Kollam: The Aluminium Industries Limited (Alind) at Kundara that was reopened after nearly two decades of closure has lost its sheen as the company was revived ignoring a Vigilance report on the corruption that had led to its fall.
The Vigilance and Anti-Corruption Bureau had found irregularities in the land dealings of the company that failed to comply with the norms. A quick verification report submitted by the VACB’s Kollam unit based on a petition filed by the Alind shareholders association has made certain recommendations regarding the corruption that prevailed in the company. The state government apparently neglected these recommendations and revived the company by giving several exemptions.
The VACB recommendations
(1) The government should initiate action to recover the dues and other financial obligations to grama panchayats in Kundara and Mannar, Thiruvananthapuram and Kochi corporations, sales tax department and KSEB incurred due to non-payment by Alind.
(2) The land that has been illegally kept under possession of Somany Group after the expiry of lease term should be recovered or the government should implement the report by a three-member committee appointed by it to study the lease agreement. The committee had recommended to number the sandalwood trees in the leased land to prevent theft of the same. The Kollam district collector could be given directions to implement the recommendations by the committee.
(3) The central government had directed to verify the possibilities to pass a Bill on Aluminium Industries Limited (acquisition and transfer of undertaking) ordinance 2010 as mooted by the state government. This could be reconsidered.
(4) An able official from the law department of the secretariat should be appointed to supervise the cases in connection with Alind that are pending in the National Company Law Tribunal to help the efficient conduct of these cases.
The state government was liberal towards the demands by the operator, Somany group. These included provision for electricity through one-time settlement of bills, renewal of factory licence and licences from local bodies, renewal of land lease agreement and provision to supply the products to the Kerala State Electricity Board for the reopening of the factory. A meeting convened by the chief minister in the presence of industries and fisheries ministers on July 31 gave the nod for reopening Alind Kundara.
“Former industries minister E.P. Jayarajan had filed an appeal with AIFR that the government was interested in reviving the company by forming an industrial cooperative society. This was sabotaged by the minister who replaced him resulting in giving back the company to Somany group, the promoter who hatched the ploy to loot valuable property owned by Alind,” said Mr G. Ashokan, convener, Alind Thozhilali Koottayma.
To get the majority of shares with Alind, the face value of shares were brought down to Rs. 1 from Rs. 10. The majority of shares that were with the general public came to the hands of the promoter, he alleged.
“Now 70 percent of the shares are with a company named ‘Vijayfan investment and consultancy private limited’ which had crept in between,” he added.
