Vizhinjam seaport stake transfer a breach of contract, says Kerala opposition leader Vijayan

Kozhikode: Opposition leader Pinarayi Vijayan said on Saturday that Adani Group’s proposed transfer of 49% stake in the Vizhinjam international seaport to Switzerland-based Mediterranean Shipping Company (MSC) was a blatant breach of contract.Vijayan said he has written to SEBI and the stock exchanges, seeking intervention in the equity transfer. Vijayan said he raised the issue in the assembly soon after the information came out, pointing out that the Adani Group’s move was a blatant violation of Clauses 5.2 and 5.3 in the concession agreement. Vijayan said CM V D Satheesan replied that the state govt had not received any notification on the matter.Vijayan said the govt’s prior permission must be obtained for such equity transfer.

But what Satheesan said was that the state govt did not receive any such application, seeking permission.He said that such matters usually need to be examined at various levels. “First, the department handling the port and its minister sees it; then the law department examines it sometimes and the law minister sees it; at some stages, the finance department needs to examine it and the finance minister sees it. A particularity here is that all of this is one person.

It is the CM who handles all these departments,” said Vijayan.He asked how the Adani Group got the courage to make such a move without informing the govt in advance . That is where a highly serious suspicion arises, Vijayan said.He alleged a press note issued by the CM’s office on the matter sees things very casually.He alleged that despite a highly serious breach of contract on the part of the Adani Group, Satheesan did not clarify in that statement whether legal advice would be sought, or strong legal action would be taken.

Vijayan said the state govt must take up the issue with Sebi but the CMO statement is silent on that as well. A kind of mystery can be seen in all of this, he said, adding that Adani Group was able to do things as they pleased without giving any value to a state govt.Vijayan also sought clarification from Satheesan on whether the govt had received a letter from the Adani Group regarding the proposed share transfer. He added that Vizhinjam Port was a very important port of the state.

“The state govt has invested money in it. It is the taxpayers’ money, isn’t it? A severe concern is arising as to whether the interests of Keralites are being protected in the matter,” said Vijayan.Vijayan also referred to Congress leader Rahul Gandhi’s past criticism of the Adani Group. He also cited remarks by Congress general secretary K C Venugopal, who earlier alleged that Adani Group enjoyed undue influence in BJP-ruled states. Vijayan also clarified that his objection was not directed at MSC itself and that the global shipping major was among the world’s largest shipping companies and has been operating at Vizhinjam.

He, however, alleged that acquisition of a significant ownership stake by such a company could gradually lead to a monopolistic structure at the port, affecting its long-term development.