The Kerala high court on Wednesday set aside the order of a special court in Thiruvananthapuram directing the concerned investigating agency to obtain the sanction of the Lok Sabha speaker to prosecute former chief minister K Karunakaran, at present a member of Parliament, in the Palmolein import case.

Justice N Krishnan Nair issued the order on a petition filed by the previous Left Democratic Front government.

The case relates to the import of Palmolein from Malaysia when Karunakaran was heading the United Democratic Front government, allegedly causing a loss of Rs28 million to the state exchequer.

The high court held that Karunakaran was a chief minister when the offences were alleged to have been committed. He had demitted the office by the time the charge sheet was filed. There was no allegation that he had misused or abused his office as an MP.

"I hold that the permission of the speaker of the Lok Sabha is not necessary to proceed against the respondent for the offences alleged under the Prevention of Corruption Act," the judge said.

Former minister T H Mustaffa, then chief secretary Padmakumar and several IAS officers are also accused in the case.

Meanwhile, dismissing the petition filed by the leader of the opposition, V S Achuthanandan for impleading him in the case, the judge said, "I am not inclined to implead the petition since the government has not withdrawn the RP. I do not say that Achuthanandan has no locus standi in the matter."