The Kerala government has officially halted the recovery of ₹4.92 crore from Kozhikode Corporation’s former councillors and officials in connection with the contentious Njeliyanparamba waste treatment plant case. The dispute centers on the Njeliyanparamba solid waste treatment plant, whose construction contract was awarded by Kozhikode Corporation back in 1998, with civil works expected to finish in nine months. However, a series of extensions dragged the completion to November 2003, and the final bill was only submitted in 2004. Disagreements over payment rates led the contractor to file a case, which ultimately went in his favor, with compensation awarded by the Sub Court in Kozhikode. Facing a ₹2.39 crore payout plus interest and court costs, the Corporation tried appealing but missed procedural requirements, causing the court’s stay to lapse. The dispute was finally settled at ₹4.92 crore at the Mediation Centre, ratified by the High Court in January 2016.
Audit Scrutiny and Controversy
Kerala’s State Audit Department flagged the payout as “unauthorized” in its 2016–17 and 2017–18 reports, recommending that the amount be recovered jointly from 75 former councillors and two top officials who approved the deal. This move sparked fierce debate, with former Mayor Thottathil Ravindran and others arguing that it was unjust to penalize councillors who merely attended the initial council meetings, especially since the payment resolved a long-standing legal dispute originating in an earlier term.
Government Decision and Rationale
After reviewing multiple petitions and official reports, the government concluded the councillors could not bear full responsibility due to the legal and administrative complexities involved. It did acknowledge procedural lapses by certain officials, notably a failure to provide a bank guarantee and delays in legal action, but deemed further recovery impractical given retirements and the circumstances of payment. The final government order validated the payment as a lawful settlement of the court decree and closed all recovery proceedings, effectively ending the matter for both councillors and officials.
Implications for Local Governance
This case highlights the dilemmas faced by local governments in reconciling audit objections, legal settlements, and the realities of long-term project management. It underscores the necessity for more robust procedures and clearer accountability frameworks, especially around complex, multi-year infrastructure projects. For Kozhikode, the decision brings closure, but also serves as a reminder of the administrative and financial risks cities encounter as they grapple with waste management and sustainable development.
