Kozhikode: The consultancy contract of the Muzhappilangad Beach development project at Dharmadom in Kannur district is under a cloud over violation of norms and selection of an apparently ill-suited firm.
The project is estimated to cost Rs 235 crore. A real estate firm, without much experience in the tourism sector, has been given the consultancy at 6.25 per cent commission, documents reveal.
The state finance department and the Kerala Infrastructure Investment Fund Board (KIIFB) stipulate that a commission of more than five per cent of the project expenses should not be given for projects costing over Rs 5 crore. The consultancy contract was awarded bypassing this norm.
As per the contract Rs 14.56 crore would have to be shelled out as consultancy fee though as per norms only a maximum of Rs 11.85 crore can be paid.
There is further scope to reduce the fee as much as 2 per cent when companies vie for the consultancy contract and quote competitive rates.
Change of firm
The execution of the project, being implemented using the KIIFB funds, was first entrusted with the Infrastructure Kerala Limited (InKEL). But it was later given to the Kerala Irrigation Infrastructure Development Corporation (KIIDC).
The consultancy was chosen through a global tender though the tourism department has a list of empanelled consultants.
It is alleged that a committee comprising higher-ups in the tourism department gave more marks to one consultancy, while ignoring consultancies with experience in the tourism sector.
CM took the call
Despite being a project of the tourism department, the final approval for the contract and the nod for further procedures were given directly by Chief Minister Vijayan, the Right to Information (RTI) documents reveal.
Pinarayi represents the Dharmadom legislative assembly constituency.
