Nayanar resurrects the palmolein ghost, Congress haunts him with it!

The Palmolein ghost refuses to go away.

Or, to be precise, Kerala Chief Minister E K Nayanar refuses to let it go. And worse, he has now gone and down the exact opposite.

He resurrected it last month -- by dragging Congress leader and former state finance minister Ommen Chandy's name through the, well, oil.

Nayanar's statement -- that Chandy, a politician of good standing, was deeply involved in the case -- has kicked up a storm in the state, with the Congress-led Opposition rallying behind the 'wronged' man.

"I sanctioned the money, but there was no irregularity," Chandy defends himself.

The palmolein scandal had taken place in early 1991, when Kunnoth Karunakaran was the chief minister. It had caused a huge loss to the state exchequer. Investigators had chargesheeted Karunakaran, former civil supplies minister T H Mustafa and three senior officials. Chandy's name had not at all figured anywhere -- not even in the fresh enquiry which Nayanar had ordered.

But nowthe Communist leader says Chandy was also involved in the deal (and that too, at a time when his own cabinet colleagues are facing charges of corruption and nepotism).

"We have clear evidence," Nayanar alleges, "By releasing Rs 270 million in his capacity as the finance minister, Chandy caused a great loss to the exchequer."

"That is a lie," cry furious Congress leaders, "It is a trick to cover up the government's misdoings."

Karunakaran feels that Nayanar is trying to involve Chandy to pay him back for his (Chandy's) campaign against the Communist farmers's crop-destruction rampage last month.

"No Keralite will believe the allegation," Opposition Front convener K Shankaranarayan says, "Chandy has maintained a clean record throughout his political career."

Nayanar, however, shows no sign of backing up. "The Opposition leaders are trying to influence the investigation by raising a hue and cry," he says.

EARLIER REPORT: Case against Karunakaran stirs hornet's nest in Kerala politics