The Kerala High Court has stayed the CBI probe into the alleged Foreign Contribution (Regulation) Act violation in the Vadakkanchery Life Mission housing project case for two months.
Justice V.G. Arun stayed the proceedings when the case was considered on Wednesday.
It was on a petition moved by U.V. Jose, the Chief Executive Officer of the Mission, that the Court issued the order.
The CBI had booked the case following a complaint from Anil Akkara, a Congress legislator. The legislator had complained that the provisions of the Act were violated in the financial transactions between the UAE-based Red Crescent, the sponsor of the project and Unitac, a construction company for building the houses.
The housing project became the center of a political controversy after it was revealed that Swapna Suresh, the second accused in the diplomatic baggage gold smuggling case, had received commission money for the project.
On its part, the Mission authorities contended that neither the State government nor the Mission had any role in the selection of the construction company and it was the sponsors who identified the firm. The Mission also submitted that the construction company which was contracted for the project, didn't come under any category of organization that was banned from receiving foreign contributions.