KMRL-Seematti deal in jeopardy

Kochi: The state government has decided to revise the controversial agreement with Seematti for acquiring land for Kochi Metro, following recommendations of the revenue and law departments.

Even though the government had sent a letter to Seematti as early as January, the later refused to accept it and insisted on payment of its 20 percent due immediately.

The retail clothing major also threatened to move to the High Court demanding higher compensation as envisaged in the original agreement.

However, the authorities concerned have not taken any measures to speed up the process for a new pact, even after four months. According to an RTI reply obtained by city-based Dhanraj S. Pillai, the state issued a letter to Seematti on January 9.

The reply also stated that the matter should be referred to the court since compensation amount is less. Otherwise, they will approach High Court.

Seematti replied on January 16. Deccan Chronicle had reported the controversial deal in February last year. An agreement for purchasing 32 cents of land that belonged to the textile shop on MG Road was signed.

The final agreement accessed by Mr Dhanraj revealed significant deviations from the standard clauses KMRL made with other landowners.

Though the state-level empowered committee had fixed the land price at Rs 52 lakh a cent and was mentioned in the initial agreement, the final agreement included a clause which refers to the land owner’s right to get Rs 80 lakh per cent, subject to approval from the court.

An amount, being 80 per cent of the sale consideration of Rs 13.17 crore, was paid to the landowners on behalf of KMRL and they had duly received it with their right to get land value at the rate of Rs 80 lakh. The state government wanted to annul this earlier agreement and sign a new one.