Ten years on, Holiday Mall in Kozhikode still on holiday

The mall, a public-private partnership between the Vadakara Municipality and the Holiday Group, was planned on four acres of prime land in Narayana Nagar. As per the agreement signed 19 years ago, the developer was to complete construction within 18 months and operate the mall for 25 years before handing it over to the municipality.

But ten years after its partial inauguration, even the first phase has not become operational. Shops have not been allotted, construction remains incomplete and the only income the municipality generates from this prime location extending 4 acres is an annual rent of Rs.22 lakh.

The project was mired in controversy from the beginning, facing stiff resistance from local residents and the successive municipal councils have shared the blame over this project. In an attempt to pacify public anger, the first phase was hurriedly inaugurated by the then opposition leader Kodiyeri Balakrishnan. The keys of one shop was also handed over on the occasion. However, there is no clarity to this day as who received the shop and  was any lease agreement ever signed?

Adding to the controversy, the municipality did not exhibit any interest in imposing a Rs.1 crore penalty on the Holiday Group for missing the construction deadline of 18 months. Allegations of encroachment on adjacent land for the mall have also surfaced. A vigilance inquiry was later registered over suspected irregularities and alleged municipal leniency towards the private player.

The company that invested in the mall too has not been able to rake in any profits either.