Kozhikode waste treatment plant case: Govt halts recovery proceedings of ₹4.92 cr from ex-corporation councillors

Thiruvananthapuram/ Kozhikode: The Kerala government has ordered the termination of all proceedings to recover ₹4.92 crore from the former Kozhikode Corporation councillors and officials in connection with the construction of the Njeliyanparamba solid waste treatment plant. The decision follows the government’s move to validate the expenditure, which was earlier questioned by the State Audit Department.

The 2016–17 audit report had found that the Corporation made an unauthorised payment of ₹4.92 crore to the contractor for the plant’s construction and recommended recovering the amount jointly from 75 councillors and two secretaries who approved the payment. The recommendation was reiterated in the department’s consolidated audit report for 2017–18.

The project dates back to 1998, when the Corporation awarded the contract for the plant’s civil works, initially to be completed within nine months. Following multiple extensions, the project was completed in November 2003, and the final bill was submitted in 2004. The contractor’s request for a rate revision under the 1999 Schedule of Rates was rejected, prompting him to file a case before the Sub Court in Kozhikode. The court ruled in his favour, ordering the Corporation to pay ₹2.39 crore in compensation, 12 per cent interest, and ₹25.5 lakh as court costs.

Although the Corporation appealed to the High Court, it failed to submit the required bank guarantee, resulting in the lapse of the stay. The case was later referred to the Mediation Centre in Ernakulam, where a settlement was reached for ₹4.92 crore, payable in 12 monthly instalments. The High Court approved the settlement on January 8, 2016.

Subsequently, the audit department held the Corporation’s council and officials responsible and initiated recovery proceedings. Former Mayor Thottathil Ravindran (2000-2005 term) petitioned the government, arguing that councillors who merely participated in the first meeting of a new council should not be held liable for a payment made to resolve a long-pending legal dispute from a previous administration.

After examining all these, the government concluded that the councillors could not be held fully accountable. However, it acknowledged procedural lapses by certain officials, including failure to furnish the bank guarantee and delay in legal action. The Principal Director of the Local Self-Government Department later reported that recovering the amount from the concerned officials was impractical, as most had retired and the payment was made under a court-approved settlement.

Accepting this view, the government ruled that the audit recommendation could not be enforced and that the payment made in compliance with a court decree stood valid. It has therefore closed all proceedings to recover the amount from the councillors and officials involved.