Kochi: The annual report of Inkel, a private limited company promoted by the state government, for the financial year 2012-13 has confirmed the apprehension expressed by the Comptroller and Auditor General (CAG) in a report saying there could be conflict of interest in the decisions taken by T Balakrishnan as additional chief secretary (industries), holding the charge of Inkel managing director.
The Inkel annual report which Deccan Chronicle has accessed lists a resolution of the director board that "Mr T Balakrishnan, managing director, be paid a lump sum amount for the services rendered during the period of 11.03.2011 to 31.10.2011".
Mr Balakrishnan was additional chief secretary to the government during that period. As reported by DC earlier, the director board cleared a payment of Rs 65 lakh for 2012-14, out of which Rs 14 lakh was the lump sum payment.
The CAG report which presented to the State Assembly last year severely criticised the transfer of land owned by Kerala State Industrial Development Corporation (KSIDC) in Angamaly and Malappuram to a joint venture in which Inkel held 74 per cent equity.
The CAG said the deals resulted in a loss of Rs 132.33 crore to the state exchequer. It was Mr Balakrishnan, as additional chief secretary (industries), who ordered the transfer of the government lands to the private company.
Quoting from a special audit conducted by the office of the Accountant-General, DC had reported on December 17, 2014, on the irregularities in the deal.
The CAG report, which confirmed the loss to the government mentioned in the special audit report, had rejected the government’s contentions justifying the deals and said there could be conflict of interest in Mr Balakrishnan’s decisions.
Referring to the transfer of land at Panakkad in Malappuram, the report said: “The then additional chief secretary (industries) to government of Kerala involved in the decision-making relating to the transfer of land to INKID was the managing director of Inkel, a post he continued to hold even after superannuation, as well as chairman of INKID, as a nominee of INKEL, indicating conflict of interest.”
