Cabinet nod for leasing out KSRTC commercial complex in Kozhikode

The commercial complex of the KSRTC in Kozhikode
The commercial complex of the KSRTC in Kozhikode

Kozhikode: The commercial complex of the Kerala State Road Transport Corporation (KSRTC) in Kozhikode has been leased out to a real estate group. The Cabinet took the decision to lease out the prime property here for a period of 30 years ignoring the opposition from even the finance department of the Kerala government.

The file (Trans-A2/217/2020) clearly indicates the note approving the decision was placed before the Cabinet following the chief minister’s orders. It was decided to award the long lease to Alif Builders again after scrapping it once previously.

Mac Associates had won the tender for the running of the complex in 2015 on the condition Rs 50 crore non-refundable investment and Rs 50 lakh monthly rent. This tender was scrapped by the high court in 2017.

Alif Builders got the tender when it was called for the fourth time on September 19, 2018. The condition was non-refundable investment worth Rs 17 crore and Rs 43 lakh monthly rent. However, the finance department found that the conditions laid down in the tender were not beneficial for the Kerala Transport Development Finance Corporation Limited (KTDFC) or the KSRTC. The finance department thereafter recommended that the tender be cancelled and called again.

(KTDFC is a Non-Banking Financial Company fully owned by the Government of Kerala.)

The Cabinet did not consider the recommendations of the finance department and granted the tender to Alif Builders on July 24, 2019.

Even though they were asked to deposit Rs 17 crore within two months, the Alif Builders could not comply with the demand.

Subsequently, the finance department recommended the scrapping of the tender and recovering Rs 25 lakh which was deposited by Alif Builders in an irresponsible manner.

Alif Builders and the KTDFC approached the court against the finance department’s recommendation and filed a plea to reconsider the decision to scrap the tender.

As per the chief minister’s direction, transport minister, and the higher-ups of the KSRTC and KTDFC held a meeting on February 12 and decided to grant the tender to Alif Builders and decided to expedite the process.

The chief minister himself directed that the file should be put up before the Cabinet for consideration. At the Cabinet meeting held on February 17, the decision was approved.

Meanwhile, the owner of Alif Builders has confirmed that though there is no direct connection between his company and Mac Associates which had participated in the tender, its (Mac Associates) owner Moitheen Koya is also the managing director of Alif Builders.

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