THIRUVANANTHAPURAM: The state government has initiated the process of cancelling all agreements and steps taken for setting up the Haripad Medical College (MC), a dream project of Opposition leader Ramesh Chennithala.The government initiated steps to wind up the Kerala Medical Infrastructure Development Company (Inframed) which was formed to managing the MC’s affairs. In a January 31 order, the government said Cabinet decision dated December 3, 2015 for increasing Inframed’s share capital from `40 crore to ` 80 crore, had been repealed. Additional Chief Secretary (Health) Rajeev Sadanandan confirmed to Express the step was part of the process of scrapping the project.
The government order said the Inframed managing director had been asked to take necessary steps to wind up the company. The direction was given in the wake of the company serving no purpose and the board of directors deciding to put the company on dormant status following the Vigilance case registered in connection with alleged irregularities in setting up the MC.
Soon after coming to power, the LDF Government had raised doubts over setting up an MC in Haripad as a public-private-partnership venture. Health Minister K K Shylaja, Public Works Minister G Sudhakaran and Finance Minister T M Thomas Isaac had expressed reservations. It was alleged the corporate and real estate mafia were behind the venture. The project by the Chandy Government was engulfed in controversies right from the start as it was alleged public money was used to help private players run the MC.
It was alleged the MC was being handed over to a society to run it for 99 years despite being entirely developed by the government. The Vigilance had registered a case against awarding of the consultancy contract to a Kochi-based company. The project had also faced stiff opposition from doctors, who questioned the relevance of a medical college not far from the present Alappuzha MC.