Congress led UDF opposition in Kerala on Thursday walked out of the assembly alleging irregularities in the sanction of one per cent leakage allowance to kerosene dealers even as government maintained that it acted in accordance with a High Court order on the matter.

Replying to a notice for an adjournment motion sought to be moved by Aryadan Muhammed (Cong), State Food and Civil Supplies Minister C. Divakaran said LDF government actually reduced the leakage allowance from One per cent to 0.02 per cent.

However, government restored the old rate following an order passed by High Court in a petition filed by Kerosene Dealers Association. The leakage allowance was not a creation of LDF government, he said adding it was there while it came to power.

Mr. Divakaran also said that LDF government did not increase the commission of the dealers to avoid a hike in the price of kerosene supplied through ration shops.

‘There was no irregularities in sanctioning leakage allowance’, he added. After the reply of Mr. Divakaran, Speaker K. Radhakrishnan refused leave for the motion.

Opposition disputed the contention of the Minister and said high court had only directed the government to hold discussion with the Kerosene dealers association and settle the issue.

Court had not stayed the government order of reducing the leakage allowance to 0.02 per cent, Opposition leader Oommen Chandy said before the walkout.

UDF partner Kerala Congress (M) leader K. M. Mani sought a judicial probe into the whole affair.

Taking up the issue, Mr. Muhammed said sanctioning of one per cent leakage allowance in August last year caused a loss of Rs. 5.82 crores to the exchequer.