Date:15/04/2005 URL: http://www.thehindubusinessline.com/2005/04/15/stories/2005041500471500.htm

Back Kerala Cabinet panel to study Halcyon Castle issue

Our Bureau

Thiruvananthapuram , April 14

THE State Government has decided to constitute a Cabinet sub-committee to look into the legal aspects of taking back the Halcyon Castle at Kovalam in the wake of the High Court directive to restore the property to a hotel group.

The Chief Minister, Mr Oommen Chandy, told newspersons after the Cabinet meeting on Wednesday that the sub-committee would comprise the Finance Minister, Mr Vakkom Purushothaman, the Revenue Minister, Mr K.M. Mani, and the Tourism Minister, Mr K.C. Venugopal.

The castle, which was shown as part of the Ashoka Beach Resort of ITDC, had been taken over by the hotel group when it bought the resort under the Centre's disinvestment policy.

However, following public outcry against the sell-off, the State Government had taken possession of the castle.

The High Court, while quashing the Government order, had observed that the group could be dispossessed of the property only through the process of law and not by an executive fiat.

The Chief Minister said that the castle and 4.21 hectares of land surrounding it belonged to the Government. And it would take all possible steps to gain control of the property after consulting legal experts.

The Cabinet also decided to observe the birthday of Sri Adi Sankaracharya as `Philosophers Day', which falls on May 13 this year. The Karnataka Government had already declared the birthday as Philosophers Day and the State Government would request the Centre to do so at the national level, Mr Chandy said.

On complaints of a general price rise following the introduction of value-added tax (VAT) system in the State from April 1, he said the transition from one system to another system was bound to create some confusion in the initial stages. They would be sorted out subsequently.

The Union Finance Minister has convened a meeting of State Finance Ministers on April 15 and 16 to take stock of the effects of VAT and there may be some changes based on the outcome of the meeting.