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Home  » News » Party sues top Malaysian-Indian politician

Party sues top Malaysian-Indian politician

Source: PTI
July 06, 2010 19:09 IST
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A whopping Rs 140 crore suit has been filed against veteran Malaysian Indian politician Samy Vellu by the educational arm of his party, the Malaysian Indian Congress (MIC), accusing him of misappropriation. The Maju Institute of Educational Development (MIED), the educational arm of the MIC, the country's largest Indian based political party said the sum 100 million ringgit (Rs 140 crore) included special and general damages.

The New Straits Times daily, quoting unnamed sources, said that eight others had also been named as defendants in the suit, touted as unprecedented in the history of civil action in Malaysian courts. The suit was filed at the high court in Kuala Lumpur on Monday. Apart from misappropriation, MIED is claiming damages for breach of fiduciary duties, breach of statutory duties, negligence and other damages deemed fit by the court.

Vellu, 73, has been the president of the MIC for 31

years, is currently facing a revolt within the party. Vellu took over the top job in 1979, when he became the acting president after the death of then president V Manikavasagam. Former MIC Youth chief and youth and sports ministry parliamentary secretary S Vigneswaran, represented by Vas and Co, filed the suit on behalf of MIED.

Last month, the MIED got the green light from the High Court to initiate a suit against its trustees. "MIED is worth one billion ringgit and its beneficiary is the Indian community," the paper quoting the source said. It added that Vigneswaran reportedly did this to prevent another fiasco like that which happened to Maika Holdings Berhad. Maika, established in 1982 to enable ethnic Indians to participate in the country's economic growth, is alleged to be plagued by problems including mismanagement, corruption and abuse of funds.

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