Achuthanandan backs Yusuf Ali over investment

Yusuf Ali, who heads the Abu Dhabi-based Emke Group, announced withdrawal from the Rs8 billion project after the Ernakulam unit of the CPM, which owes allegiance to the official faction led by party state secretary Pinarayi Vijayan, tried to portray him as an ‘encroacher’.

It spurred the factionalism in the party when rival faction led by opposition leader V S Achuthanandan, who incidentally cleared the convention centre and Lulu Shopping Mall projects during his term as chief minister, came to the rescue of the prominent businessman, who hails from Trichur district in the state.

Talking to reporters here on Monday, Achuthanandan said the approval for Lulu Mall was granted strictly in accordance with law. The land was allotted to the businessman through open tender and the shopping mall was built legally.

Regarding the Bolgatty project, he said the state government had nothing to do with that deal. The land belonged to Cochin Port Trust, a federal government undertaking. The CPT has clarified that the land was leased to Yusuf Ali legally and in a transparent manner.

Achuthanandan said Yusuf Ali was prompted to withdraw from the project as he was hurt by the allegations. If the allegations are baseless, those who have levelled it should withdraw or prove them, he added.

Speaking to Khaleej Times, Yusuf Ali said: “I have pulled out of the Bolgatty project not because of any political reasons or faction feuds. It is purely due to the fact that there were some very baseless allegations being made by some as part of a hidden agenda to tarnish my image and the project. Ultimately as a businessman I would never like to invest in a project which is going to be a reason for controversy and would opt out of it before it is too late. I have high regards for all political parties and would continue to invest and support new investments in the state.”

Earlier, Achuthanandan’s staunch supporter and state committee member Chandran Pillai gave a clean chit to the NRI businessman. Terming the allegations against him most unfortunate, he said he did not believe that Yusuf Ali would do anything against the law.

He pointed out that Yusuf Ali deserved a better deal as he was not a mere investor but an ambassador of the state playing a crucial role in attracting investments into the state. He said that the CPM would welcome investments.

CPM state committee member M M Lawrence said the rules governing the ports did not allow the Port Trust to sell their land for non-port activities. The land allotted to Yusuf Ali was a violation of these rules, he added.

A spokesman of the Port Trust said they were not in a position to take back the land as they had used the Rs710 million given by Yusuf Ali for clearing its debts. The spokesman said they were forced to sell the land due to financial crisis.

Meanwhwile, Chief Minister Oommen Chandy said that the state government will not allow Yusuf Ali to withdraw from the project. He said all the procedures related to the projects were completed according to laws.

He told reporters here that the state government would persuade Yusuf Ali to reconsider his decision.

news@khaleejtimes.com