Thiruvananthapuram:A controversy has erupted over the state government’s decision to appoint a firm in which industrialist Gautam Adani's daughter-in-law is a partner as the legal consultant for the bidding process for the management and operations of the Trivandrum airport.

Kerala had appointed Cyril Amarchand Mangaldas  to prepare the bidding documents. Paridhi Adani, the wife of Gautam Adani’s son Karan, is a partner in the firm. Paridhi’s father Cyril Shroff is the company’s managing partner.

It is now being alleged that there was a conspiracy to appoint the firm for a bidding process in which the Adani group was competing with the state government. The firm is also a legal consultant for many projects of the Adani group. 

The controversy has emerged in the wake of the state government strongly opposing the Centre’s decision to hand over management and operations of the airport to the Adani Group, which beat Kerala in the bidding process .

The UDF, which had supported the government’s stance on the airport in an all-party meeting called by Chief Minister Pinarayi Vijayan, has sought an explanation from him over the new revelation. The BJP has also intensified its criticism.

However, the Kerala State Industrial Development Corporation (KSIDC) has contended that the consultancy had only examined the legal validity of the tender documents. 

Mangaldas Group was hired as legal consultant in January 2019 for Thiruvananthapuram International Airport Limited, a consortium that was formed by the government to take part in the Airport Authority of India’s bidding to privatise the airport; KPMG was also appointed as the technical consultant. 

The Cabinet approved the recommendation of a committee headed by the chief secretary. Mangaldas group’s ties with the Adani group was a subject of discussion among officials even then.

Kerala’s bid had offered to pay Rs 135 per passenger to the Airport Authority, while the Adani Group said it will pay Rs 168.

According to KSIDC and senior sources, the consultants were not aware of the rate. The role of the consultancies was over with the preparation of the bidding documents, they said. 

The rate was fixed by a high-level committee appointed by the Chief Minister with the Chief Secretary and the secretaries of finance, transport and law as members. 

Even if Kerala had offered a 10 per cent lower rate of Rs 151 than Adani's winning bid, it could have won the contract under the right of first refusal.

Rs 13,000 per hour as fee

The Cyril Amarchand Mangaldas Group demanded more than Rs 15,000 per hour as fee, but the government bargained and reduced it to Rs 13,000. According to KSIDC, the consultant demanded payment at the new rate after its task was over, but the government reduced the bill further to Rs 55 lakh.