KSIDC suffer huge losses in Land deals

Kochi: The Comptroller and Auditor General (CAG) of India in a report tabled on the State assembly in 2014 severely criticised the government for transferring the land owned by Kerala State Industrial Development Corporation (KSIDC) in Ankamali and Panakkad in Malappuram district to Inkel, a private company, below the fair value the government itself had decided.

The deals involved irregularities, violated norms and resulted in a total loss of Rs 132.33 crore, the report said.  

Ankamali land: KSIDC suffered a loss of Rs 112.35 crore by leasing out 30 acres of land to Inkid, a 74:26 joint venture between Inkel and KSIDC, at Angamaly for 90 years for Rs 92,914 per cent against the fair value of Rs 4.67 lakh per cent in the area.

Due to undervaluation, the government also lost Rs 11.23 crore. “Further, 5.55 acres of the above land was subleased to Inkel exclusively for its use at the rate of Rs 1.12 lakh per cent against the fair value of Rs 4.67 lakh. Thus, Inkel got exclusive possession of 5.55 acres at low price indirectly,” the report said.    

Malappuram: 168 acres which KSIDC had bought with Central government’s financial assistance in 1998 to set up an Industrial Growth Centre at Panakkad was transferred to Inkid for Rs 25.28 crore. “The lease premium to be collected as per the pricing policy was Rs 34.03 crore as against Rs 25.28 crore collected. Thus there was a short recovery of lease premium by Rs 8.75 crore,” the report said.