Row over land allocation to UB group

State govt. gives spirits major 20 acres in Kanjikode industrial belt at below market rate

April 21, 2016 12:00 am | Updated September 08, 2016 10:53 pm IST

he allocation of 20 acres of land at industrial cluster Kanjikode in Palakkad district to spirits major United Breweries Ltd by the State government at a price alleged to be far below the prevailing market rate has kicked up a political controversy.

The now-embattled liquor baron Vijay Mallya was heading the UB group until recently.

The details of the allocation have come to light in a reply from the Revenue Department under the Right to Information (RTI) Act.

The issue may find the UDF government on the back foot even as it is already embroiled in a controversy over initially allowing surplus land taken over from a group, which also involved self-styled godman Santhosh Madhavan, to be filled up, and allowing a UAE-headquartered industrial group to fill up the Methran Kayal in Kottayam, despite the Conservation of Paddy Land and Wetland Act going against the move.

When contacted, Palakkad District Collector P Marykutty said an inquiry had been ordered following the reports on the land allocation being aired by television channels on Wednesday. She, however, asserted that no misappropriation of government land would be permitted.

The RTI reply

According to the RTI reply, the 20 acres (Survey number 37) has been allotted to the UB Group at Pudussery West Village. The land is located close to the proposed permanent campus of the Palakkad IIT. The reply does not give any specific reason for allocating the land at concessional rates. The UB group has four major liquor bottling plants in the vicinity. A beer bottling plant of the company had courted controversy over drawing groundwater heavily in an area facing extreme water scarcity.

Market rate

Though the prevailing market rate for land at Kanjikode is reported to be above Rs.3 lakh per cent, the UB Group paid just Rs.70,000 per cent.

The company has paid a total of Rs.14,03,26,576 to the government. The allocation had been made much before the announcement of the latest liquor policy of the government. UB Group representatives in Palakkad declined to respond to the fresh controversy.

Leader of the Opposition V.S. Achuthanandan, who represents the Malampuzha Assembly constituency (Kanjikode falls in the area), has come down heavily on Chief Minister Oommen Chandy for the alleged irregularities. He has demanded a high-level investigation into the deal, apart from its immediate cancellation.

District Collector

P. Marykutty says an inquiry has been ordered into the

land allocation

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