Thiruvananthapuram: While the Central government proposed to end the private sector participation in back sand mining in 2019, the Kerala government issued the order only in 2023, records show.

The contract with KMRL, the subsidiary of the Kochi-based CMRL, for sand mining was cancelled only in December 2023, close to five years after the Centre's order. Records show that the cancellation order was issued after the alleged illegal payment between CMRL and Veena Vijayan's Exalogic stirred up a political storm.

Congress MLA Mathew Kuzhalnadan had on Tuesday alleged that the money paid by the Kochi-based mineral company CMRL to Kerala CM's daughter and her firm Exalogic was to get Pinarayi Vijayan's approval for some sand-mining leases which were on hold since 2004.

Kuzhalnadan claimed that the leases granted to CMRL's sister concern KMRL in 2004 were stayed in the same year. Thereafter, the company had gone in appeal to the mines tribunal which ruled in its favor and asked the state government to reconsider its decision.

As the state government again declined to grant the leases, the company opted for litigation and from the Kerala High Court to the Supreme Court, everywhere the orders were in its favour. But the apex court, while ruling in favour of CMRL, said the state government can reclaim the leased land by issuing a notification. Kuzhalnadan said that such a notification was not issued and a few months after the first Vijayan government came in power in 2016, his daughter started receiving money from the private company. Even after the central government in 2019 ordered scrapping of all such leases given to private companies, Vijayan still tried to find ways to grant the same to the private company.