Shell companies used PSUs and cooperative societies as cover to get work tenders, says Satheesan in his affidavit to Kerala High Court on "zero-tolerance to corruption".
The Kerala High Court. (South First)
The Congress-led Opposition in Kerala has stepped up its offensive against the ruling LDF, raising allegations of corruption against the government’s recent projects. The UDF has also decided to fight the government legally.
In an additional affidavit filed in the Kerala High Court on Friday, 30 June, the Leader of Opposition (LoP), VD Satheesan, stated that Public Sector Undertakings (PSUs) and cooperative societies were being used by shady companies to grab major projects such as the installation of Artificial Intelligence (AI)-enabled traffic surveillance cameras, Kerala Fibre Optic Network (K-FON), and others.
Earlier in June, Satheesan, as well as senior Congress leader and MLA Ramesh Chennithala, had filed a petition in the Kerala High Court, alleging corruption in the installation of AI cameras as part of the Safe Kerala project.
The high court, on 20 June, directed the state government, Keltron, and several private companies associated with the installation of AI cameras to explain their stands on the allegations.
The petitioners challenged the orders issued by the LDF government regarding the installation and operation of the AI cameras, alleging “illegalities, nepotism, favouritism, and corruption” in granting the contract.
The Opposition demanded quashing the administrative sanction and the comprehensive administrative approval given to the “Automated Traffic Enforcement System for Safe Kerala” project.
It also sought a declaration from the court that SRIT India Pvt. Ltd, which was given the work contract by the state-run Keltron, was unqualified to participate in the tender process as it lacked expertise in traffic signal monitoring and did not satisfy the tender stipulations.
A bench of Chief Justice Sarasa Venkatanarayana Bhatti and Justice Basant Balaji directed the state government not to make any financial payments as part of the project without seeking a clarification from it or till further orders.
The bench also directed the two Congress leaders — Satheesan and Chennithala — to file an additional affidavit on their “zero-tolerance towards corruption” stand. The court clarified that it sought the affidavit for more transparency in the decision-making process.
In the additional affidavit filed, Satheesan claimed that the projects were entrusted to public sector undertakings or cooperative societies to aid corruption.
He claimed that the public sector undertakings, without expertise and resources, were inviting tenders and entrusting the work to private parties on flexible terms.
“An examination of such orders issued to public sector undertakings and cooperative societies which in turn had entrusted the work to private parties will show the enormous erosion of public funds in which the decision makers became the beneficiaries when the corporate veil is lifted.
“Recent controversies surrounding important state-funded projects, including the AI camera project, K-FON project, LIFE mission, Covid purchases, etc, show that numerous violations and corrupt practices were employed to steal money from the state coffers,” the affidavit alleged.
Satheesan submitted before the court that in projects such as AI cameras, K-FON, or LIFE mission, “The public sector enterprises and cooperative societies were used as masks by shady or shell companies to grab the project.”
He also claimed that these PSUs were selected as the implementing agencies either without a formal tender process or through a name-sake tender process.
“While Keltron was arbitrarily chosen as the implementation agency for the AI camera project in violation of government orders, the Central PSU Bharat Electronics Limited was given the project in K-FON for exorbitant tender excess in violation of all conventional guidelines and orders relating to tender excess,” the affidavit said.
The Congress leader cited another example of such “abuse” — the Uralungal Labour Contract Co-Operative Society (ULCCS), which he claimed that it received the majority of government projects “without tender”.
“In connivance with shell companies, the implementing agencies create extravagant project estimates despite having little to no expertise in the technology involved. The exorbitantly high estimate created for the AI camera project makes this abundantly clear,” he said.
The court listed the matter for further hearing on 13 July.
The Kerala government had in 2020 entered into an agreement with Keltron for the AI camera project. In April this year, Chief Minister Pinarayi Vijayan inaugurated the Safe Kerala project, which included the installation of the AI cameras, envisaged to reduce road accidents and fatalities, and traffic violations in the state.
Chennithala and other Congress leaders have been alleging that the Left government committed irregularities in awarding the tender to SRIT for the setting up of a fully-automated traffic enforcement system.
In an earlier interview with South First, Chennithala accused Keltron of misusing its authority.
“Keltron has been given the contract to manufacture the required products as it is a PSU. But it misused its authority and transferred its duty to a third-party company called SIRT,” he said.
“SIRT does not have any expense in the ₹232.25-crore project. The other two companies, Lyte Master Lighting India and Presidio Technology, along with a third company called Al-Hind, formed a consortium. So, neither Keltron nor the government of Kerala has any expenses,” the Congress leader said.
Chennithala said Al-Hind as well as Lyte Master left the consortium after losing trust in Keltron.
“The products were purchased for ₹61 crore and they made a profit of ₹8-9 crore. The remaining amount was to be divided between Presidio Technology and SIRT India in a ratio of 60:40. I will share the details of this deal at a news conference,” Chennithala said
He also alleged that the project was a brainchild of M Sivasankar, former principal secretary to the chief minister.
“This is Sivasankar’s baby. This was planned and executed after discussions with the chief minister. Those who are related to the chief minister are getting the benefits. Keltron was made a scapegoat,” he stated.
Once a powerful bureaucrat, Sivashankar was arrested for a third time in the LIFE Mission scam in February.
(With PTI inputs)
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