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The boat was carrying 30 children, and 20 of them have so far been rescued.
They were on their way to offer condolences to another family.
The survivors were brought to the port city of Tagbilaran in Bohol province and an investigation was underway.
This glaring violation was finally revealed during the stability test and examination of the design held under the direction of the police after the mishap
The police probe also found contradictions arising from the application of two different laws for the same purpose.
Ponnani and Beypore Port Department offices 'involved in allotting the permit for haphazardly modified boat'
Police seize boats, arrest crew for violation of norms
Atlantic's owner Nassar's elder brother Hamsakutty is a CPM leader in Tanur and has close ties with Abdurahiman.
The division bench also said that the maximum number of passengers that can be accommodated on the boat should be displayed prominently.
22 persons drowned in Poorapuzha River on May 8 as boat with no permit to ferry so many people sank.
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