Smart City row: LoP sends letter to Kerala govt urging to reconsider its decision

Thiruvananthapuram: Days after raising the real estate agenda behind its move to end the Smart City Project in Kochi by compensating Dubai-based TECOM, the Congress-led UDF opposition on Monday urged the Kerala government to re-examine its decision, saying that it is against the interests of the state.

There were clauses in the contract to recover all investments and costs made by the state government from the Dubai-based firm in the event of a breach of contract, and so no compensation shall be paid to TECOM for any reason, it said.

Leader of Opposition V D Satheesan sent a letter to Chief Minister Pinarayi Vijayan citing the demand.

He said there were widespread allegations that the motive behind the government's move was real estate interests.

In the letter, the LoP demanded the Pinarayi Vijayan government to reconsider its "unilateral move" to withdraw from the project by paying money to TECOM, which had violated the conditions.

As per the framework agreement signed between the Dubai-based company and the state government in 2007, it was clearly stated that the government may recover the investments made by it in case of default on the part of the TECOM, he said.

Therefore, the government's move to pay compensation to TECOM, which had defaulted on the project, is against the interests of the state, Satheesan stated.

He also described the government's move to pay money to the company as "mysterious." The LoP sent the letter to the chief minister in this regard days after Vijayan had clarified that the payment to be made to Dubai-based TECOM for its exit from the Smart City Project in Kochi is not compensation but the cost of its shares in the venture.

Vijayan had said that the transaction would be a rightful settlement of TECOM's investment.

The Congres-UDF, however, has been alleging that it was a purported decision by the government to hand over the 246 acres of land, which cost crores of rupees, to its favoured individuals.