In a new turn in the palmolein graft case, a Special Vigilance Court here today gave sanction for a further probe that could bring former Chief Minister and Congress leader Oommen Chandy under the scanner.

The order of the court, which also asked the investigating agency to submit a report within three months, came following the prosecution plea seeking a further probe on the ground that some more persons were likely to be named accused in the case.

Earlier this month, the prosecution had filed a petition seeking direction for a further probe, a move seen as an attempt to drag in Chandy, who was Finance Minister in the UDF ministry headed by late K Karunakaran, which cleared the palmolein import deal in 1991.

Today's development is considered significant as Chandy is UDF's Chief Ministerial candidate for the April 13 Assembly polls in the state.

Vigilance Special Judge S Jagadish observed that the prosecution had the right of further investigation under Sec 173(8) of Cr PC and hence formal sanction was being granted.

The court, however, did not mention any name or make specific observations in its order.

The palmolein case, in which former Central Vigilance Commissioner P J Thomas (then Food Secretary) and former Food Minister T H Musthafa are among the accused, took a political turn last month after Musthafa mentioned Chandy's name in his discharge plea. Thomas's appointment as CVC was struck down by the Supreme Court recently.

Musthafa said it was fair enough to have spared Chandy in the case, but the same fairness was not shown in his case when he was listed as an accused.

Musthafa's plea was used by Left parties to target Chandy, alleging he was also responsible for the cabinet decision.

Reacting to the court order, Chandy said he would co-operate with the investigation but the LDF owed an explanation to the people as to why his name was not mentioned anywhere in connection with the case in the last 20 years.

As speculation had been rife he might opt out of contest for the Assembly polls if his name was mentioned in the case, Chandy said he had told the High Command what he would do if he was made an accused after the investigation.

The case relates to alleged corruption in import of 30,000 tonnes of palmolein from Malaysia at exorbitant rates, which allegedly caused a loss of Rs 2.32 crore to the exchequer in 1991-92.

The UDF government led by Chandy had decided in 2005 to close the palmolein case in which late Chief Minister K Karunakaran was first accused. However, the LDF government under V S Achuthanandan reopened the case in 2006.