Kerala High Court Issues Notice To Chief Minister Pinarayi Vijayan, Daughter Veena In CMRL Pay-Off Case

The District Director Management Authority Alappuzha made an order to increase the width of the spillway of the Thottapally by removing sand to prevent floods in Alappuzha especially in Kuttanad region. Kerala Minerals and Metals Limited (KMML), a public sector company, was permitted to remove mineral sand from Thottapally Spillway Pozhi Mouth. As per the agreement, KMML was to excavate the deposited sand, excavate the minerals and deposit the balance sand at the place specified by the officers. The petitioner alleges that government allowed mineral mining in the guise of disaster management. The petition further states that the dredging of the spillway has not prevented floods in subsequent monsoon. On the contrary, three years of immense mining in the ecologically sensitive zone might have had an adverse impact on the ecosystem. This was all done to bypass the longer procedure required for mining as this area is a 'Non – Development Zone as per the Costal Regulation Zone Notification, 2011. The petitioner alleges that ilmenite mined from Thottapally spillway was given to CMRL.

CMRL had entered into a join venture with Kerala State Industrial Development Corporation (KSIDC), a State government agency and India Rare Earths Limited (IREL), a govt. of India undertaking and incorporated Kerala Rare Earths and Minerals Limited in 2001. KREML had purchased 24.2688 hectares of land in Alleppy in contravention of Section 82(1)(d) of Kerala Land Reforms Act. The KREML had made representation to State Government seeking exemption under Section 81(3) of the Land Reforms Act, but the same had been rejected. However, much later in a meeting on 15.06.2002, a decision was taken to recommend the Land Board to give the exemption.

The State Government on 15.09.2004 had granted 4 mining leases in favour of KREML for extraction of mineral sand from coastal areas of State. This was later terminated on 15.09.2024. The Hon'ble Supreme Court in State of Kerala & Ors v M/s Kerala Rare Earth & Minerals Limited, cancelled the termination. Later, the Central Government notified the Atomic Mineral Concession Rules, 2016. As per the rule, no beach mineral can be mined in the country by private companies. The opinion of the Attorney General was sought to decide on cancellation of lease given to KREML in this background. The lease was cancelled only on 18.12.2023. Petitioner alleges that this delay was to wait till private parties were making an effort to have the policy changed.

It was alleged by the petitioner that these were all favours done by the Chief Minister to CRML in lieu of the payment made to Exalogic and Mrs. Veena.

The Special Judge in its decision observed that CRML can get minerals from KMML. It was not given for free. Then for the exemption granted under S. 81(3) of the Land Reforms Act, the Judge observed that on reconsidering the application as directed by the High Court, the application for exemption was rejected by the Collector. The Special Judge held that the allegation that the Chief Minister sought the opinion of Attorney General to delay the cancellation of mining leases is a stretch.

Case Name: Dr. Mathew A. Kuzhalnadan v Pinarayi Vijayan and Others

Case No: Crl. Rev. Pet. 588/2024