THIRUVANANTHAPURAM: The LDF government hiring a law firm close to the Adani Group as legal consultants while bidding for the Thiruvananthapuram airport has kicked up a controversy. The Opposition UDF and the BJP have come out questioning the government’s double standards.
The UDF, which offered to join hands with the government to pass a resolution on the airport privatisation issue, has now indicated a rethink.
Opposition leader Ramesh Chennithala sought clarification from the government on roping in a firm close to the Adani Group.
“Reports of the state government seeking legal advice on the bidding process from Cyril Amarchand Mangaldas, a firm owned by a close relative of Adani, does raise concerns. If true, this shows a nexus between the state government and the Adani Group,” he said in a statement on Saturday.
“Adani Group was one of the major bidders for the airport along with the state government. The fact that a single firm gave legal advice to both the state and the Adani Group and the latter won the bid raises serious questions on propriety and integrity. The LDF Government must explain how the firm was hired despite this conflict,” he said.
Chennithala said reports point to a conspiracy involving the government and it should bring in clarity before introducing a resolution on the issue in the assembly on August 24. He expressed doubts over the government’s neutrality in the matter.
“By involving a firm close to Adani, it seems the government was unable to maintain secrecy of bid documents,” he added.
BJP state president K Surendran too came down heavily on Chief Minister Pinarayi Vijayan. He termed Pinarayi a ‘Kumbidi’, an iconic Malayalam movie character who can do different things at different places at the same time.
“In front of the masses, Vijayan said they oppose giving the contract for Thiruvananthapuram airport to Adani’s group, while the same Vijayan-led government appointed a consultancy owned by Adani’s daughter-in-law. Out of Rs 2.5 crore spent for consultancy services, Rs 55 lakh was given to Adani’s family member itself,” he alleged.
The government courted controversy after the revelation that it had appointed law firm Cyril Amarchand Mangaldas as legal consultants to participate in the bid for the Thiruvananthapuram airport. Cyril Amarchand Mangaldas is a Mumbai-based law firm owned by Cyril Shroff, father-in-law of Gautam Adani’s son Karan.
Allegations have risen that there is a conflict of interest as legal consultancy was given to a company in which the government’s principal opponent in bidding has a stake. An amount of Rs 55 lakh was paid to the firm as professional fee.
The Kerala State Industrial Development Corporation (KSIDC) — which participated in the bidding on behalf of the state government — lost out to the Adani Group which quoted a rate of Rs 168 per domestic passenger, while the state quoted Rs 135 per passenger. A committee headed by former chief secretary Tom Jose coordinated the bidding process.
The government also paid a total of Rs 2.36 crore to KPMG as consultancy fee for providing technical consultancy services for the bid. Meanwhile, KSIDC clarified that a committee headed by the chief secretary had fixed the rate per passenger quoted in the bidding.
“The Cyril Amarchand Mangaldas has no connection with the rate quoted in the auction,” a KSIDC official said.
‘Govt hand in glove with Adani Group’
KPCC president Mullappally Ramachandran alleged that the state government was hand in glove with the Adani Group in clinching the deal. Mullappally alleged that the airport, which has been a profit-making entity, is being handed over to Adani Enterprises with the connivance of the LDF Government.