Carton India, under VACB lens over PP Divya links, faces fresh allegations on ₹12-cr contracts secured using another contractor’s licence

Kannur: Carton India Alliance Pvt Ltd, which secured contracts worth more than ₹12 crore for public works from Kannur District Panchayat, bid for projects using the licence of another contractor, KSU state vice-president P Muhammed Shammas alleged.

Shammas, who is pursuing a Vigilance probe into the contracts awarded during the tenure of former Kannur district panchayat president P P Divya, has cast his net wider at a press conference in Kannur on Monday.

"Binoy Kurian, who was the district panchayat vice-president at the time, was also involved. Information specifically linking Binoy Kurian to the matter came to me only recently," said Shammas. Binoy Kurian, a CPM Kannur District Committee member, is now the District Panchayat president.

The contracts won by Carton India included the installation of prefabricated modular toilets and girl-friendly toilets in schools across the district, besides the construction of an animal birth control centre at Padiyoor panchayat near Iritty. The work was routed through Steel Industrials Kerala Ltd (SILK), a government-accredited agency.

Reading from a SILK document, Shammas said Carton India had secured empanelment as a contractor with SILK using the licence of another contractor, K A Abdul Khader. “To cover up the irregularities, Carton entered into an MoU with Abdul Khader,” he alleged.

Again citing a 2023-2024 audit report of the Kannur district panchayat published by the Kerala State Audit Department, Shammas said: "Money was sanctioned to Carton India Alliance Private Limited for installing prefabricated modular toilets. However, the files do not make clear how Carton was selected to execute the projects. Records of the tendering procedures were also not available."

A preliminary inquiry by the Vigilance in 2025 also flagged the same issues, but the then LDF government papered over it by saying it was a "procedural lapse".

Shammas's allegations are part of a complaint that led to the UDF government sanctioning a Vigilance investigation on October 23 against Divya, her husband V P Ajith and former district panchayat secretary Abdul Latheef under Section 17A of the Prevention of Corruption Act. The decision reversed the previous LDF government's refusal to permit a preliminary inquiry into Divya's role.

Shammas also released an audio clip purportedly of Mohammed Asif, the director of Carton India, in which he called Divya 'chechi'. "I am sharing the clip only to prove that not only Asif knew Divya but was close enough to call her sister," said Shammas.

In the clip, Shammas said Asif can be heard telling the recipient of the voice message to meet Binoy Kurian, as Divya instructed.

Binoy denies irregularities
Binoy Kurian, who was the district panchayat vice-president when Divya headed the body, denied that contracts had been awarded in violation of procedure. He said the district panchayat followed the prescribed tender process and that SILK, not the panchayat, selected Carton India for the work.

According to Kurian, the district panchayat first invited tenders from project management consultants (PMCs) in 2022-2023. SILK quoted the lowest percentage service charge and was selected as the agency.

SILK subsequently invited bids from companies to execute the projects, prepared the estimates and completed the procedures before awarding the work, he said.

A tripartite agreement involving Carton India, SILK and the district panchayat was then signed, Binoy said, adding that the panchayat had awarded work in accordance with the agreement.

He said Shammas had been given all the relevant documents by the district panchayat but was continuing to make what he described as wild allegations. The records were available for inspection at the panchayat office, he said.

He also said the auditors might have raised the objections based on the available documents. They withdrew their objections once the documents were provided, he said.

But as Shammas pointed out, a Vigilance report in January 2026 had flagged the same issue: they could not find any evidence of the tender getting publicity.

Asked whether he would initiate legal action against Shammas over the allegations, Kurian did not give a direct answer. He, however, said he was open to an investigation.

Another prefab toilet company in Kasaragod
Shammas said that after he first held a press conference against Carton in January 2025, the startup did not bid for any other project with the District Panchayat. Instead, it started focusing on other districts, particularly Kasaragod.

During that time, a new firm, UrbanCraft Alliance India LLP, was incorporated. It was founded by the then Kasaragod District Panchayat president and CPM leader Baby Balakrishnan's son Kiran Balakrishnan.

The company specialises in public sanitation, health infrastructure and prefabricated construction, similar to Carton India's line of work. According to its website, UrbanCraft executed prefabricated toilet projects for government schools under the Palakkad district panchayat.