MIED member files Rs 140 crore suit against Samy Vellu

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.

Last Updated: Jul 06, 2010, 16:46 PM IST

Kuala Lumpur: 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,
today 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 here yesterday.

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, 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
today.

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.

PTI