Kollam: An NCP leader is the contractor in the tree auction that caused a loss of Rs 1 crore to the Kerala Forest Development Corporation (KFDC) Thiruvananthapuram division's Arippa sub-unit. The NCP leader, a native of Pangode, secured the auction for cutting down eucalyptus trees in two plantations. He owes more than Rs 1 crore including taxes to the Forest Development Corporation. The corporation had initiated departmental action against three people, including the Thiruvananthapuram divisional manager, for not paying the money even after the trees were cut.

The duration of both the contracts was extended several times on the recommendation of the divisional manager based on the application by the contractor who is also the ruling party leader. The KFDC managing director's report states that the contractor did not complete the work on the plantation during the 27 months including the extended period and owes the corporation Rs 1 crore. There has been criticism that the leader used his relation with the minister of his party, to influence and obtain multiple extensions.

As per the contract, for cutting Eucalyptus pellita trees in 8.474 hectares, Rs 46.40 lakh is yet to be paid. As per another contract for cutting Eucalyptus hybrid trees in 12.75 hectares, Rs 54.08 lakh is yet to be paid. The inspection found that there were no trees left in the plantation equal to the amount to be paid.

The managing director's report states that the divisional manager and the assistant manager did not inspect the plantation during the period of the cutting time and take necessary steps to pay the money. It is also stated that the contractor was allowed to transport more timber than the amount for each time he paid. This led to the huge loss.