Vijayan Condemns Unauthorized Share Transfer
Kerala Chief Minister Pinarayi Vijayan on Thursday launched a sharp attack on the Adani Group for transferring shares of the Vizhinjam port without obtaining prior approval from the state government. Speaking in the Kerala Assembly, Vijayan termed the move as a violation of the concession agreement and demanded clarification on the government's next steps.
The Vizhinjam port, a major infrastructure project in Kerala, is being developed by the Adani Group under a public-private partnership. The controversy erupted after reports emerged that the group had transferred a portion of its equity to a foreign entity without seeking the mandatory consent from the state government.
Legal and Procedural Violations Alleged
Vijayan stated, "The CM also needs to clarify what steps the government proposes to take in light of this move by Adani." He emphasized that the transfer of shares without government nod is a serious breach of the agreement and could have implications for the project's timeline and financial structure.
The Chief Minister questioned the transparency of the transaction and called for a thorough investigation. He added that the government would consider all legal options, including termination of the contract, if the Adani Group fails to comply with the terms.
Opposition Demands Action
Opposition leaders in the Assembly echoed Vijayan's concerns, demanding strict action against the Adani Group. They alleged that the share transfer could compromise national security and the state's economic interests. The Congress-led opposition also sought a detailed statement from the government on the matter.
According to sources, the Adani Group has defended the transfer, stating it was part of a restructuring plan and did not require prior approval. However, legal experts point out that the concession agreement explicitly mandates government consent for any change in shareholding.
Impact on Vizhinjam Port Project
The Vizhinjam port, once completed, is expected to become a major transshipment hub, boosting Kerala's economy and creating thousands of jobs. The project has faced several delays and controversies, including protests from local fishermen and environmental groups. The latest dispute over share transfer adds to the challenges facing the project.
Vijayan assured the Assembly that the government would protect the state's interests and ensure that the project is completed without any irregularities. He also hinted at possible legal action if the Adani Group does not revert the share transfer.
