Cashew calamity in Kerala

Jays Jacob
10 July 2003

Kochi: As the Kerala state government claims heavy financial constraints for support towards the reopening and revival of the cashew factories under the cooperative sector, Cashew Workers Apex Industrial Cooperative Society (Capex) and the public sector Kerala State Cashew Development Corporation (KSCDC) are allegedly showing a "mysterious lethargy" in realising a legally due amount of Rs 4.2 crore from the Tribal Cooperative Marketing Development Federation (Trifed), a central government organisation.

The amount could have been realised six months ago. But the industries department has shown no interest in filing the required execution petition to realise the same. Says Capex chairman G Balachandran. "Such an amount was due from Trifed and pending realisation came to my attention only five days ago. Now I have taken steps to realise the amount by informing the industries department."

Since his takeover as the chairman of the Capex, he says no one had informed him about the realisation of such an amount from Trifed. "It was while going through the files last week that I become aware of it." He immediately communicated it formally to the industries department to realise the amount. It is alleged that there was a vested interest behind keeping the realisation of the amount pending.

The motive was allegedly to keep alive the vigilance case against Capex officials, including the then managing director K V Kamaladharan, who were suspended in connection with the loss supposed to have been incurred by Capex at that time on account of the controversial deal with Trifed.

Capex was awarded the amount by the Kerala Cooperative Tribunal as compensation following a legal battle, which lasted a couple of years. The issue pertains to a deal for the supply of raw nuts, which Capex entered into with Trifed in October 1995.

As per the deal (known as 'Andhra deal'), 5,000 tonnes of raw nuts had been supplied to Capex by Trifed through an agent, BP Exports, at the rate of Rs 34.50 per kg on a guarantee that the out-turn on processing will be 21.5 kg kernels on a bag of raw nuts containing 80 kg.