Ministry threatens to prosecute Kannur airport authorities

TRIVANDRUM: The federal ministry of company affairs has threatened to prosecute the Kannur International Airport promoters if they continue to resist government audit.

In a letter to its managing director V. Thulasidas, MOCA deputy director Atma Sah said they should comply with the rules as the state holds 63 per cent stake in the company.

The Comptroller of Auditor General of India approached the MOCA after the airport company rejected its repeated requests for access to its accounts.

Two months back, the kerala assembly witnessed an opposition walkout after chief minister Pinarayi Vijayan refused a debate on this.

Vijayan, who is also chairman of the company, rejected their demand saying it was a private company and there was no need for a federal audit.

Similarly, he rejected their demand for similar comprehensive auditing in the Kerala Infrastructure Investment Board (KIIFB) as well.

In a clear indictment, the MOCA reiterated the company is required to comply with the provisions in the act governing the state-owned enterprises.

It points out that the Kerala government has 32.86 percent stake in the company followed by 31.93 per cent stake of the public sector undertakings.

Holding that the company is already in violation of Sections 139 (5) and (7) of the Companies Act 2013, it asks it to comply with them immediately.

“Accordingly, the company is indirectly owned by the government. Therefore you are directed to coordinate with the CAG of India,” it says.

“The company, as well as officers in default, are liable for prosecution under Section 147 of the Act if they continue to violate the sections mentioned above.” Opposition floor leader Ramesh Chennithala had also petitioned Governor Arif Mohammed Khan with the demand and alleged widespread corruption and nepotism.

They also accuse the Kannur International Airport Limited (KIAL) and KIIFB, which mobilises extra-budgetary funds avoiding strict fiscal discipline rules, violating all norms.

“KIIFB and KIAL are special-purpose initiatives that are substantially funded by the Government of Kerala,” his memorandum says.

“The public at large believe that the decision to deny audit of these authorities is in fear of the CAG exposing huge corruption and misgovernance.”

Vijayan had pointed out that the public auditor was not reviewing accounts of the Cochin International Airport Limited (CIAL), in which the state is the single largest stakeholder, as well.

Chennithala, however, argued that the state was a minority stakeholder in the CIAL, which runs India’s first corporate airport, while the CAG was auditing KIAL until 2016.