KSIDC took forest land at Nelliyampathy on mortgage

THIRUVANANTHAPURAM: The Kerala State Industrial Development Corporation (KSIDC) has landed into a controversy by taking Meera Floor estate, a forest land at Nelliyampathy in Palakkad district, on mortgage.

KSIDC had provided loan to Trend Group of companies in the Cochin Export Processing Zone in 1991 to set up export-oriented readymade garment unit.

However, KSIDC in a press release claimed that there was no loss in the deal. The amount given as loan was Rs. 5.89 crore and about Rs 7.04 crore was gained, said KSIDC. But KSIDC has not specified how much money was to be gotten.

It was when KSIDC went on the process of confiscation that Trend Group gave the forest land on mortgage. It is learnt that the Revenue officials tried to lend the land for loan. And for this, the Palakkad District Collector gave a certificate from Chittoor Tahsildar to KSIDC.

The mortgage fraud which was identified on November 2010 has been kept as a secret.