Kerala opposition alleges IAS officer's transfer at Vizhinjam port benefits Adani

Thiruvananthapuram: The Opposition CPI(M) in Kerala has alleged that the recent transfer of IAS officer Divya S Iyer as Managing Director of Vizhinjam International Seaport was aimed at benefitting the Adani Group. The party demanded that Chief Minister V D Satheesan explain the reasons behind her removal.

Senior CPI(M) leader and Kannur district secretary K K Ragesh made the allegation in a Facebook post amid controversy over Adani Ports and Special Economic Zone Ltd's (APSEZ) proposed transfer of a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL), the port concessionaire, to Switzerland-based Mediterranean Shipping Company (MSC).

Mr. Ragesh claimed that Ms. Iyer had played a key role in safeguarding the state's interests by resisting attempts to alter provisions of the Vizhinjam port concession agreement. He alleged that Adani authorities had made repeated efforts to have her removed from the post. According to him, the then Chief Minister Pinarayi Vijayan had rejected such attempts, stating that the government would decide matters relating to its officials.

Mr. Ragesh said the bureaucrat was transferred soon after the change of government and replaced by an officer with no experience in port administration. Ms. Iyer now serves as the principal director of the Local Self Government Department.

The CPI(M) leader questioned why an experienced officer heading a strategically important project was shifted immediately after the new government assumed office. He also questioned Chief Minister Satheesan's recent chartered flight visit to Mangaluru, alleging that the results of that meeting with Adani officials were beginning to emerge. He sought an explanation on the purpose of the visit and who bore the cost.

Mr. Ragesh criticised the government's decision to retain the ports portfolio under the Chief Minister, along with the finance department. He alleged that an empowered committee constituted to examine the proposed share transfer comprised officials from departments directly under the Chief Minister, raising concerns about its independence.

Noting that the concession agreement requires prior state government approval for any share transfer, Mr. Ragesh asked whether the government was prepared to initiate legal action against the proposed stake sale. He also alleged that while the state has invested around ₹5,400 crore in the Vizhinjam project, Adani has invested about ₹2,400 crore and stands to gain over ₹13,000 crore through the proposed transaction.

The remarks come days after Chief Minister Satheesan expressed displeasure over APSEZ announcing the proposed stake transfer without informing the government. The Chief Minister stated that the state government had not granted approval and that the matter would be examined by an empowered committee in accordance with the concession agreement.