Kerala HC directs govt to halt payment for AI cam deal

The bench comprising Chief Justice S V N Bhatti and Justice Basant Balaji said no payment shall be made until further orders from the court or without informing it.
Kerala High Court (File photo)
Kerala High Court (File photo)

KOCHI:  Putting the state government on the back foot, the High Court on Tuesday directed it not to make any payment under annuity to the contractor for the operation and maintenance of AI cameras under the ‘Safe Kerala’ initiative.

The division bench also decided to examine the impact on the exchequer due to the change in the project module from BOOT (build, own, operate, transfer) to the annuity.

The bench comprising Chief Justice S V N Bhatti and Justice Basant Balaji said no payment shall be made until further orders from the court or without informing it. The interim order was issued on a joint petition by Leader of Opposition V D Satheesan and senior Congress leader Ramesh Chennithala seeking a court-monitored inquiry into the project for the Automated Traffic Enforcement System and its execution.

“We are convinced that the Public Interest Litigation needs to be examined from the perspective of change in the dynamics of implementation of the project, whether the change is objective, bona fide or vitiated by any of the collateral reasons stated in the petition,” it observed.

HC to examine change of module; issues notices to govt & Keltron

The court has decided to examine the change of module from BOOT to annuity and whether the exchequer is directly or indirectly made to part with more than what has been envi sa g ed in the beginning. It will also ascertain whether the government order was issued giving comprehensive administrative approval to Safe Kerala Project without a decision on crucial aspects noted in proceedings of a cabinet meeting and taken up for consideration before the Cabinet on April 12.

According to Senior advocate George Poonthottam, who represents the Congress leaders, Keltron, a state government company, submitted a DPR for the project with an estimated cost of Rs 236 crore. He mentioned that the project could be implemented under the BOOT method. In the case of the BOOT model, the state government or the employer is not required to make any upfront payment.

However, in this project, the project cost was divided into 20 quarterly instalments of Rs 11,79,11,440 each, to be paid from the first quarter after the project’s implementation, which does not align with the BOOT model. The plea argued that since the payments were being made to Keltron in annuity mode over 20 quarters, the project cannot be considered a BOOT model.

The plea also highlighted the absence of information regarding the source of funds for the project in the cabinet note. The court pointed out that in the petition, filed in the public interest, the petitioners are not objecting to implementing the ‘Safe Kerala Project’ but have pointed out a series of allegations on the transparency in the decision-making process for availing the technology-enabled services on traffic issues.

N Manoj Kumar, State Attorney, informed that from June 5, the project which was a model project at one stage, has been replicated at other places in the state and therefore, is set in motion. The court also issued notice to the state government, Keltron and others. “While ordering notice, we prefer to place on record that in the present PIL, the petitioners desire transparency, accountability, and complete probity in the discharge of the public trust reposed by the people,” said the Bench.

UDF welcomes court order

 The UDF on Tuesday welcomed the HC order. Senior Congress leader Ramesh Chennithala said AI camera deal was one of the biggest scams in the state. 

Not a setback, says minister 

Transport Minister Antony Raju has said that the High Court order to suspend payment for the AI camera project was not a setback to the government.

Not as mentioned in DPR

20 quarterly instalments to be paid from the first quarter after project implementation does not align with the BOOT model mentioned in DPR, argued the petitioners

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