THIRUVANANTHAPURAM: The opposition has alleged irregularities in the handover of the central-state PSU Cheruvannur Steel Complex to a private company. The allegation was made by Congress member T Siddique during the discussion on the fund request.

The steel complex, which has assets of over 300 crores including land, was handed over to Chhattisgarh Outsource Service in North India at a bargain price of 29 crores. It was alleged that there is a huge irregularity in handing over the steel complex for a low amount when even the loan liability of the institution is 107 crores. Siddique did not back down even as Speaker AN Shamseer objected to the allegation, pointing out that it was under the consideration of the court.

The default in repayment of a loan of Rs 45 crore taken from Canara Bank in 2013 is what led to the handing over. The bank approached the National Company Law Tribunal when the instalments continued to fail. The tribunal ordered that the institution be handed over to a private company on an agreement to pay Rs.30 crores. The chairman of the company is a government official. It is alleged that the government has defaulted on the loan repayment despite the hearing of the case being held several times in a year and there is a mystery in this. The land of the institution was included in the debt without complying with the conditions. The government did not oppose this.

Government opposed: Minister Balagopal

Finance Minister KN Balagopal, replying on behalf of Industries Minister P Rajiv, said that the government was not aware that the steel complex had been handed over to a private firm. This is a decision without listening to the government. The government has appealed against this.