Bolgatty deal caused loss to the exchequer, says CPI(M) panel

The Ernakulam district committee of the party had appointed a two-member panel comprising P. Rajeev, MP, and K. Chandran Pillai, to look into the issue following a public uproar over the controversial land deal.

The land reclaimed by the Port Trust at Bolgatty Island and leased out to LuLu group.

A CPI(M) organisational commission set up to probe the Cochin Port Trust’s (CPT) controversial Bolgatty land transaction has concluded that the deal has caused huge loss of revenue to the exchequer. Party sources said the commission report has sought an inquiry by a central investigating agency.

The CPI(M) commission in its report has pointed out issues of undervaluation of the Bolgatty land by the CPT. Party sources indicated that the report will be submitted to the CPI (M) State committee shortly.

The Ernakulam district committee of the party had appointed a two-member panel comprising P. Rajeev, MP, and K. Chandran Pillai, to look into the issue following a public uproar over the controversial land deal. Though the panel members had earlier publicly taken divergent views on the issue, the duo is understood to have submitted a unanimous report to the party leadership.

The panel report pointed out that the Port Trust went beyond its mandate in leasing out the land for non-port activities. According to CPI(M) sources, the report highlighted the manner in which Port Trust, which reclaimed the land for port-related activities, leased out the land for non-port activities to a LuLu group, sources said.

The party commission, according to insiders, has sought a probe by a central agency as the Port Trust, a central public sector unit, has allegedly caused a huge loss. The report is also understood to have listed out the follies committed by the Trust in leasing out the premium plot.

The Hindu had reported about the irregularities in the deal in which the 25 acre waterfront property was leased out to LuLu Group for a 30-year renewable lease for an upfront premium of Rs. 71 crore. The group proposes to construct service apartments, hotel and a convention centre.

The CPI(M) Ernakulam district secretariat had earlier demanded scrapping of the deal and called for a through probe into the issue.

Veteran CITU leader M.M Lawrence and a few environmentalists and trade unions had also demanded a probe by a central agency into the controversial transaction.