New Delhi, January 27
Embarrassed by the developments in the CVC case in the Supreme Court today, the government appears to be veering round to the view that controversial PJ Thomas should voluntarily resign from his post.

Law Minister M Veerappa Moily met Prime Minister Manmohan Singh hours after the Supreme Court was told by Attorney General GE Vahanvati that the committee, which selected Thomas, was not aware of charges against him in the two-decade-old palmolein oil import case.

Later, Vahanvati said: "It was never stated by me that this matter pertaining to the palmolein oil case was not discussed by the members of the committee (headed by the Prime Minister)."

Officials said the meeting between Moily and the Prime Minister did not relate to the issue of CVC.

Highly placed sources in the government said given the turn of events and controversies surrounding Thomas, it would be better if he voluntarily stepped down from his office, to which he was appointed on September 7 last year, to avoid a situation in which the apex court might pass strictures or even strike down his appointment.

The other course, sources said, would be to initiate the process of his removal through Presidential reference.

The government came under sharp attack from the Opposition after the AG's statement before the Supreme Court.