The government of the north-eastern Indian state of Assam has initiated moves to bring to book a former chief minister suspected of involvement in a multi-million dollar letter of credit (L/C) scam.

A revised affadavit has been filed in the supreme court by the current Congress (I) government on Prafulla Kumar Mahanta - who is still president of the opposition Asom Gana Parishad party - related to his alleged participation in the US $ 55 million scandal that rocked the state eight years ago.

Second affadavit

This is not the first affadavit related to the scam to be filed on Mohanta. An investigation into the matter was launched in 1993 by the Central Bureau of Investigations (CBI), which submitted a report in 1997 when it also sought permission from the state governor to prosecute Mohanta.

The governor refused permission on the basis that Mohanta was chief minister in 1997. The revised affadavit claims that the governor's permission to prosecute was not required because at the time the scam was uncovered - in 1993 - Mohanta was not chief minister and should not therefore have been immune from prosecution.

More scams

The L/C scam is the biggest ever case of known corruption in Assam and according to persistent reports in the local media, some very senior politicians in the current Congress (I) government - including the current chief minister - as well as former holders of high office have been involved in this or similar scams.

The CBI is reportedly investigating a similar case of corruption the state of Bihar. Both this and the Assam case apparently centre on the practice of offering credit, usually L/Cs to contractors for work undertaken for the government. The department managing the work sanctions payment and money is subsequently withdrawn from the treasury by the contractor.

Some observers believe that government contractors have been routinely able to submit L/Cs for hugely inflated amounts because, so it is alleged, they have done so with the knowledge of ministers who receive a share of the proceeds.

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