This time, the controversy has flared up over two business projects of NRK businessman, M A Yusuff Ali: the LuLu Mall which has come up at Edapally, Kochi, and the other, a convention-centre-cum hotel project Ali is planning to set up on Bolgatty island in Kochi.

The controversy finds leader of the Opposition V S Achuthanandan and the office-bearers of the Ernakulam district committee of the CPI(M) on the opposite sides.

It was the Ernakulam district committee which set the ball of controversy rolling by alleging irregularities in both the projects. The bungling has caused the state exchequer losses running into crores, alleged Ernakulam district CPI(M) secretary Dinesh Mani,who is close to State CPI(M) secretary Pinarayi Vijayan. Mani has accused the EMKE group headed by Yusuff Ali of having encroached on the Edapally canal while constructing the LuLu mall.

VS has dismissed the allegations, saying that there was nothing illegal in the construction of the LuLu mall, permission for which was given while he was the Chief Minister. He had discussed the issue with the then local self-government minister Paloli Mohammed Kutty and found that there was no violation of rules while granting permission for the project.

Mohammed Kutty has supported Achuthanandan in the matter identifying himself with the views expressed by the latter. But M M Lawrence and other leaders have criticized VS’s stand on the issue. VS has not studied the issue properly, contended Lawrence, a known Achuthanandan baiter.

Unfazed by the opposition, VS has reminded the critics that those who are opposing the project should remember that it would give employment to at least 4,000.

There are indications that the controversy would gather momentum in the coming days to come and lead to a lively debate within the party, providing fresh impetus to sectarianism. The CPI(M)’s rank and file is puzzled at the sudden eruption of the controversy after so many years.

Significantly, CPI secretary Pannyan Ravindran and Chief Minister Oommen Chandy have also supported Achuthanandan in the matter, saying that there is nothing illegal about the project.

As for the Bolgatty project, VS said the land was handed over to Ali by the Union Government and the Cochin Port Trust. There was a tender, and Ali had participated in it and won the bid, VS pointed out.

The Ernakulam District CPI(M) secretary says it is not legal. His contention is that the Port Trust’s decision to lease the land for the Bolgatty project violates the rule that no non-port activity can be undertaken on the land without the green signal from the Revenue Department. Reports have it that no consultations have taken place between the Revenue department and the Cochin Port trust on the issue. A spokesman of Ali has, however, contended that the global tender notice floated for the project says that the land could be used for non-port purposes.

Meanwhile, Yusuff Ali has decided to withdraw from the Bolgatty project in view of the controversy. He is learnt to have written to the Cochin Port Trust, requesting it to refund the Rs 67 crore he had given to it for securing the lease right on the land. Chief Minister Oommen Chandy has however, said there was no question of allowing Ali to withdraw from the Bolgatty project. (IPA)