Controversy Surrounds Kerala's Smart City Project Decision

The Congress-led UDF in Kerala is challenging the state government's decision to compensate Dubai-based TECOM upon exiting the Smart City Project in Kochi. The opposition highlights contractual provisions to recover state investments, alleging the move caters to real estate interests rather than state interest.

The Congress-led UDF opposition in Kerala has raised concerns over the state government's decision to compensate TECOM, a Dubai-based firm, for exiting the Smart City Project in Kochi. According to opposition leader V D Satheesan, the move contradicts the project's contractual terms, which allow the state to reclaim its investments in case of contract breaches by TECOM.

The opposition claims that the government's decision is driven by hidden real estate agendas. The letter sent to Chief Minister Pinarayi Vijayan by the Leader of Opposition suggests a reconsideration, arguing it is against the interests of the state. It insists that no compensation is warranted as TECOM defaulted on its commitments.

Chief Minister Vijayan has clarified that the payout to TECOM is for the rightful settlement of its shares, not compensation. However, the UDF alleges the deal facilitates a transfer of significant land to favored individuals, sparking further controversy.

(With inputs from agencies.)