Kerala Opposition Accuses UDF of Bypassing Assembly Rules to Benefit Liquor Firms

Kerala Leader of the Opposition Pinarayi Vijayan on Thursday accused the United Democratic Front (UDF) government of violating Assembly conventions by passing the Finance Bill in a manner that allegedly benefits private liquor companies. Vijayan alleged that Chief Minister V.D. Satheesan displayed unnecessary haste to provide tax cuts to liquor firms.

According to Vijayan, the Finance Bill was not part of the schedule for the Revised Budget session. The government had earlier stated that no new tax proposals were under consideration, a position reiterated in the Business Advisory Committee. However, after the Budget presentation, the Bill was inserted into the agenda to validate a tax concession for liquor companies, Vijayan claimed. He said the Opposition had planned to cooperate but witnessed attempts to mislead the House.

Vijayan asserted that the Bill aimed to amend the Kerala General Sales Tax (KGST) rules to benefit certain liquor companies. He noted that such Finance Bills are usually vetted by the Subject Committee, a convention that was violated. The Chief Minister justified the move by citing a similar bill passed by the previous LDF government, but Vijayan countered that the LDF bill contained no new tax proposals.

Regarding the Chief Minister's earlier statement that tax cuts would be discussed within the UDF, Vijayan questioned the relevance of further discussions now that the Bill is passed. He pointed out that the decision was taken despite opposition from within the front and from socio-religious organisations.

On the Adani-MSC Vizhinjam deal, Vijayan said the proposed transfer of Adani Group's 49% stake in Adani Vizhinjam Port Private Limited to Switzerland-based Mediterranean Shipping Company (MSC) without prior government permission is illegal. He noted that the concession agreement requires prior approval for any transfer of more than 25% shares. Vijayan alleged that the deal, presented as foreign investment, is aimed at generating profits for Adani Group. He referred to a share purchase agreement dated June 29 filed with the Securities and Exchange Board of India and demanded clarity from the Chief Minister, who also holds the Ports portfolio.

Vijayan argued that the deal could lead to MSC's monopoly in Vizhinjam, affecting cooperation with other major shipping companies, and urged the government not to cave in to pressure from the Adani Group.

On black sand mining, Vijayan dismissed the government's allegations that the LDF government had opened it up to the private sector. He clarified that Kerala Metals and Minerals Ltd had chosen a private company for an experimental project to separate minerals from already extracted sand due to lack of technology, and accused the Chief Minister of making misleading claims.