Leader of the Opposition in the Kerala Assembly VD Satheesan on Thursday criticised the state cabinet’s decision to end the Smart City project, describing it as a strange move made without any prior discussion.

Addressing a press conference here, Satheesan alleged that the LDF government’s decision covert move to hand over 246 acres of prime land in Kochi to real estate giants close to the CPI-M leadership. He further said that the government has a responsibility to explain to the people of Kerala why the project failed.

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Calling the move mysterious, Satheesan questioned the basis for the government’s decision to provide compensation to Tecom after eight years.

“There are ambiguities in this matter. The 246 acres of land involved are worth crores of rupees. Is this a covert move to hand over this land to private interests and allies? This appears to be a land deal,” he alleged.

He said a venture that promised to provide employment to 9,000 youths is being scuttled. He questioned the government’s decision to compensate the company that failed to execute the project.

Senior Congress leader Ramesh Chennithala accused the government of corruption behind the decision. Instead of paying compensation, the state government should take action against Tecom for failing to utilise the 246 acres of land allocated for the project,” he said. He also demanded the cancellation of the cabinet decision.

Joseph C Mathew, former IT adviser in the VS Achuthanandan government,  said as per the terms of the agreement, the government should have sought compensation from Tecom. He added that the contract signed by the Oommen Chandy government was rewritten during VS Achuthanandan’s tenure.

Meanwhile, state Industries Minister P Rajeeve refuted these allegations, assuring the public that the land would remain designated for development by IT companies, with a government committee overseeing the compensation assessment for Tecom.

The state government has decided to exclude the Dubai-based Tecom company from the Smart City Kochi project. The state cabinet meeting held on Wednesday approved a plan for the exit of Dubai-based Tecom Investments Group from the Smart City Kochi IT project.

The government approved the recommendations submitted by a committee led by Chief Secretary Sarada Muraleedharan, which included a mutually agreed-upon exit proposal between the Kerala government and the promoters. Tecom Investments, a subsidiary of Dubai Holdings, has 84% share while the government holds 16%.

The government has decided to reclaim the 246 acres of land allotted to the Dubai-based Tecom Investments Group for the development of the Smart City Kochi IT project, once projected as a major initiative to put Kerala on the global IT map.

The project was touted as one that would bring global investment to Kerala. The first phase of the project, signed in 2011, became a reality in 2016. However, even after 13 years, the second phase didn’t materialise and the project deepened in a crisis, unable to meet any of the stated goals. Thus, the decision was made to exclude the Dubai-based Tecom company.