Chandigarh, Dec 22 : The Punjab cabinet Tuesday refused to grant permission to the Central Bureau of Investigation (CBI) to prosecute state assembly speaker Nirmal Singh Kahlon in a corruption case.

The CBI had sought sanction from the Parkash Singh Badal-led Punjab government in March.

The corruption case pertains to Kahlon's alleged role in the appointment of over 900 panchayat secretaries during his tenure as state rural development and panchayat minister 1997 to 2002.

"Cabinet considered at length the report of the Superintendent of Police (CBI) concerning speaker Nirmal Singh Kahlon. We also considered the opinion of the additional advocate generals and the chief secretary," Badal's media advisor Harcharan Bains said here Tuesday.

"On the basis of these reports, the cabinet was of the opinion that it is not a fit case wherein sanction should be accorded for the prosecution of Kahlon. Therefore, it was decided not to approve the sanction in this regard," he added.

Kahlon's name figuring in the CBI report had led to pandemonium in the Punjab assembly earlier this month.

The CBI had accused Kahlon of misusing his political position and illegitimately appointing over 900 panchayat secretaries during his tenure as cabinet minister.

The Punjab and Haryana High Court had directed the CBI, in 2003, to probe the case. After conducting their independent inquiry, CBI had accused Kahlon and over dozen officials, including three-four senior bureaucrats in its over 50-page report.

Following this, the CBI had written to the Akali Dal-led government, seeking its permission to initiate prosecution of Kahlon.

CBI sources said that Kahlon along with his close associates had manipulated documents related to the selection procedure to accommodate their own candidates. They had charged money ranging from Rs. 100,000 to Rs. 400,000 from each candidate before assuring them a post, according to the CBI report. (IANS)