The recent war of words between Tecom, the Dubai-based promoters of the project and the Kerala Government has heightened the sense of uncertainty over the future of the Left Democratic Front's prestigious project.

Irked by what it called lack of response from the state government, the Tecom has gone to the extent of hinting at a legal war should the need arise.

The 'threat' followed Kerala Chief Minister V S Achuthanandan's categorical statement that the Government would explore other options in case the Smart City Kochi project did not take off. The Kerala CM's 'message' to Tecom was loud and clear: shape up or ship out. That seems to have unnerved Tecom and hence the talk by Smart City Kochi CEO Fareed Abdul Rahman of a legal battle.

The bone of contention has been Tecom's insistence on freehold of 12 per cent of the total 246 acres of land set apart for the Smart City Kochi project. This is part of the original framework agreement the company signed with the Kerala Government in May 2007, it is claimed.

The value of 12 per cent of the land - nearly 30 acres - according to market rates, is around Rs 200 crore. Tecom wants sale deeds for the 30 acres of land so that it can raise funds for the Smart City project from this.

Tecom has also rejected the State Government's contention that it cannot allow freehold rights to a foreign company. Smart City Kochi is very much an Indian company registered under the rules of the land, it is pointed out.

On the other hand, the Kerala Government has said that the company should first start work on the project and all other issues could be sorted out later. The Government has said that the insistence on freehold of 12 per cent of the land is aimed at making real estate gains, adding that it cannot compromise on the State's interests and dignity.

Significantly, the latest Board of Directors' meeting held on June 28 was not attended by Kerala's Fisheries Minister Mr S. Sarma who is also the Smart City Kochi chairman.

Mr. Sarma had said at the last Board of directors meeting in March that the Board was not the right place to take decisions on contentious issues and that only Government-level talks could solve it.

Meanwhile, the latest Board meeting witnessed a protest demonstration by the Revolutionary Youth Front (RYF) demanding that the 'UDF agent' Tecom should withdraw from the project. General Secretary of the RYF, Mr. Salam P. Chacko, who inaugurated the demonstration, also asked the state government to implement the project without the involvement of Tecom if necessary. (IPA)