Thiruvananthapuram

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

Senior CPI(M) leader and Kannur district secretary K K Ragesh made the allegation in a Facebook post amid the ongoing 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 shipping giant Mediterranean Shipping Company (MSC).

Mr. Ragesh alleged that Iyer had played a key role in safeguarding the state's interests by resisting attempts to alter provisions of the Vizhinjam port concession agreement and claimed that Adani authorities had made repeated efforts to have her removed from the post.

He further alleged that the then Chief Minister Pinarayi Vijayan had rejected such attempts, telling the company that the government would decide matters relating to its officials.

According to Mr. Ragesh, the woman bureaucrat was transferred soon after the change of government and replaced by an officer with no experience in port administration.

Ms. Iyer is now serving as the principal director of the Local Self Government (LSGD) Department.

Mr. Ragesh asked the Chief Minister to clarify why an experienced officer heading a strategically important project was shifted immediately after the new government assumed office.

Mr. Ragesh also questioned 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 of the chartered flight.

The CPI(M) leader criticised the government's decision to retain the ports portfolio along with the finance department under the Chief Minister.

He alleged that the empowered committee constituted to examine the proposed share transfer comprised officials from departments directly under the Chief Minister, raising concerns over its independence.

Noting that the concession agreement requires prior approval from the state government 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 had invested around ₹5,400 crore in the Vizhinjam project, Adani had invested about ₹2,400 crore and stood to gain over ₹13,000 crore through the proposed transaction.

The remarks come days after Chief Minister Satheesan expressed the state government's displeasure over APSEZ announcing the proposed transfer of a 49 per cent stake in AVPPL to MSC without informing the government.

The Chief Minister had said the state government had not granted approval for the transaction and that the matter would be examined by an empowered committee in accordance with the concession agreement.