THIRUVANANTHAPURAM: The Cabinet on Thursday decided to transfer the controversial Halcyon Castle in Kovalam to the Ravi Pillai Group, but decided to retain the right to file a civil suit to reclaim ownership of the property if needed. Although the matter had been taken up in the previous Cabinet meetings, a decision was delayed with the CPI staunchly opposing an unconditional handover.
The CPI, which holds the Revenue portfolio, has been insisting the government retain the right to file a civil suit. Thursday’s Cabinet acknowledged the stand taken by both CPI and Administrative Reforms Commission chairman V S Achuthanandan in this regard.
Of the CPI ministers, only Food Minister P Thilothaman was present at Thursday’s weekly Cabinet meeting. The latest meeting decided to hand over the palace, built by Rama Varma Valiya Koyil Thampuran in 1932 as a retreat, and 4.13 hectares of land to the RP Group in tune with various orders issued by the High Court and the Supreme Court. The Tourism Department, a portfolio held by the CPM, had for long advised the government to complete the transfer.
But the CPI and the Revenue Department, the custodian of all public lands in the state, had fought it tooth and nail. Later, the government had approached the Attorney General and the Advocate General for advice.
The Attorney General and the Law Department advised a transfer. However, Advocate General C P Sudhakara Prasad suggested the government retain its ownerships rights over the coveted property. Subsequently, he changed his opinion and asked the government to transfer the property.
In 1970, the India Tourism Development Corporation (ITDC), the then owner of the palace, had sold the property to MFar Group. It later fell into the hands of Leela Group, and subsequently, the RP Group. In 2004, the government floated the Kovalam Palace (Taking Over by Resumption) Act to recover the property.But a High Court Single Bench, while terming it unconstitutional, held the ownership is in dispute. This decision was upheld by a Division Bench in 2014.The Supreme Court too issued orders in favour of the RP Group in 2016.Earlier this year, the RP Group had filed a contempt of court petition, with the government slow-pedalling the transfer. It was in this context the government sought legal advice.
