The infighting in the Kerala CPI(M) is threatening to pollute the investment atmosphere of the State. UAE-based Kerala industrialist MA Yusuffali, managing director of the Rs30,000-crore EmKe group, has decided to withdraw from his prestigious Rs800-crore project in Kochi following allegations of irregularities in the deal for its land, raised by a section in the CPI(M).
The threat from Yusuffali to withdraw from the project is also related to the allegations, the same section in the CPI(M) had levelled against his Rs1,800-crore venture, lulu International Shopping Mall at Kochi. However, one section in the CPI(M) and Kerala’s Congress-led UDF Government have offered support for the industrialist.
The allegation that infuriated Yusuffali, who is running several businesses in Kerala, relates to the 10.59 acres of land held by the Cochin Port Trust on the Bolghatty island off Kochi, which was given to Yusuffali on lease for starting an international convention centre and a world-class hotel, which would employ 4,000 directly and 10,000 indirectly.
A section of the CPI(M) neo-liberalists, enemies of central committee member and State Assembly’s Opposition leader VS Achuthanandan, alleged that the land was given on lease to Yusuffali in violation of norms and that it had caused huge losses to the Port Trust.
On Monday, Yusuffali sent a letter to the Port Trust saying that he had decided to withdraw from the Bolghatty island project in this context. He said he would return all documents of the land once he was paid what he had spent on the project. The Port Trust board, meeting on Wednesday, is expected to discuss the issue.
Chief Minister Oommen Chandy made it clear that his Government was determined to support Yusuffali in the Bolghatty project issue by saying that the land deal was perfectly legal. He said there should be no efforts to humiliate the industrialist, who had supported the former CPI(M)-led Government in its efforts to make the Smart City IT Park project a reality.
CPI(M)-watchers say that the actual target of the neo-liberalists is not Yusuffali or the Port Trust but this was an extension of their war within the party against Achuthanandan. However, Achuthanandan offered indirect support to Yusuffali by saying that it was up to those who had levelled the allegation to find out the irregularities.
Rejecting allegations levelled by his own party colleagues, Achuthanandan said on Monday that Yusuffali’s company had not done anything illegal to construct the lulu Mall at Edappally, Kochi. “The (former) lDF Government had not done anything illegal in according to sanction to the mall project,” he said.
The arguments of those who levelled allegations against Yusuffali with respect to the mall issue lost some steam on Monday after former local Administration minister and CPI(M) central committee member Paloli Muhammad Kutty, himself a neo-liberalist, justified the clearance accorded to Yusuffali’s company for the shopping complex.
What has surprised the trade and industry in Kerala is the fact that those who have now come forward against Yusuffali’s venture belonged to the group in the CPI(M) which welcomes private investment while support for the industrialist is aired by Achuthanandan, leader of the party faction that is opposed to big play of private capital.
“This war may be part of the group wars in the CPI(M) but it will surely muddy the investment atmosphere in the State,” said a leading businessman with retailing and hospitality interests. “This is happening just when we were all relieved that political differences on the need of attracting private investment had ended and that the Marxists had reformed themselves,” he said.