Defending the decision to retain Nair, Vijayan said he is one of the leading criminal lawyers in the state and the case was based on a private complaint.
Giving details of the complaint, he said that Nair, as one of the directors of the Nilambur Institute of Medical Science, had signed along with the chairman of the institution for taking Rs five crore loan from a bank.
In a bid to corner the ruling LDF, Chennithala demanded to know how the government could appoint a person against whom a case had been registered for financial irregularities, as the state DGP.
Rejecting the opposition charges, Vijayan said it was natural that a court would consider a complaint when it comes before it.
"The complaint is now before the court for consideration. Nair is not an accused now,"the CM said adding that government had not committed any lapse in appointing him as DGP.
The leader alleged that the other board members of the Institute came to know about the liability of Rs five crore only when they received a recovery notice.
Chennithala also said Nair's continuation in the post was a 'setback' to the judicial system in the state.
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