New Delhi: The Kerala government has filed an affidavit in the Supreme Court stating that it owns 82 pc of the shares of the Uralungal Labour Contract Co-operative Society (ULCCS). In the affidavit, it is also mentioned that the co-operative society has been given permission to take up projects without any sort of financial constraints. 

The affidavit was filed by the state government in response to the petition filed against the contract offered to Uralungal for the construction of the seven-floor court building in Kannur. Standing Counsel CK Sasi had filed the affidavit.   

The affidavit also points out an existing order which stipulates that contracts of government construction activities can be handed over to cooperative societies which quotes up to 10 pc higher price than the lowest quotation quoted by a private contractor. In the affidavit it is also mentioned that allowing concessions to cooperative societies in building contracts was part of the policy framework of the government.

The lowest quotation for the construction of the Kannur court was submitted by AM Mohammed Ali’s Nirman Constructions. However, the Kerala high court division bench ordered to hand over the construction of the building to the Uralungal Labour Society which quoted 7.10 pc higher price than the Nirman Constructions. Following this, the Supreme Court issued a stay order after considering a petition filed against the contract co-operative society. The court had even raised the question of how the contract was handed over to Uralungal when a private company had quoted a lower price. The government affidavit was filed in response to the court’s query.