Kerala High Court Directs Government to Clear ₹36 Crore Dues for AI Traffic System

The Kerala High Court on Friday directed the state government and the Motor Vehicles Department (MVD) to release outstanding dues of ₹36 crore to a private firm that installed and maintains AI-enabled automated traffic enforcement cameras under the Safe Kerala Project. The order, issued by Justice Ziyad Rahman A.A., requires the payment to be made through Keltron, the project management consultant, within one month.

The firm, which had been selected through a transparent tender process, contended that its quarterly payments had been pending despite the successful implementation and operation of the system across the state. It noted that there was no dispute regarding the work execution, system operational status, or invoices raised. The court observed that the payment was a contractual obligation and should have been released even without a court directive.

The project was executed under a Build, Own, Operate and Transfer (BOOT) model, requiring the firm to make the entire upfront capital investment. Cost recovery was structured through assured quarterly payments after the official 'Go Live' declaration. The firm stated that the project was completed and operational readiness communicated in May 2022, but the 'Go Live' declaration was delayed by nearly 15 months, causing severe financial prejudice.

The court noted that a Public Interest Litigation (PIL) raising allegations against the project and its implementation had previously been dismissed by the High Court. Despite acute financial distress, the firm continued technical support, manpower deployment, and maintenance, keeping the system operational. The firm argued that the state and agencies derived substantial public and financial benefits, including a significant reduction in road accident fatalities and generation of enforcement revenue. The matter has been posted for further hearing after a month.