The Kerala Transport Development Finance Corporation (KTDFC) will look for a new bidder to lease the commercial complex of the Kerala State Road Transport Corporation (KSRTC) on Mavoor Road as the Kerala High Court has cancelled the in-principle agreement that the State government’s non-banking financial company had reached with Mukkom-based MAK Associates.

The cancellation has been done on the basis of complaints from other bidders that the agreement was reached without any transparency, the contract had anomalies and that there were flaws in the construction of the 11-storied commercial space. The court has issued a directive to the KTDFC to summon a meeting of eligible bidders and arrive at a decision on handing over the complex within a month.

The KTDFC has also been issued instructions to rectify all faults in construction, secure a building number and certificate of approval from the Department of Fire and Rescue Services. If this was not possible within the stipulated time, then the KTDFC should cancel all tenders and invite fresh bids in three months. The existing bidders can also take part in the new tenders.

MAK Associates had told the court that it had not been able to make any gains out of the agreement it had reached with the KTDFC. “The company had deposited ₹5 crore in cash and deposited ₹16.5 crore in bank,” said managing partner K.V. Moideen Koya.

As per the agreement reached between MAK Associates and the KTDFC, the company would invest ₹50 crore as non-refundable security deposit and pay a monthly rent of ₹50 lakh for the commercial space. The contract period would be 30 years and the rent would be hiked by 10 per cent every three years. However, the lessee would also get a rent holiday for 18 months.

The commercial space in the two towers is 2,18,716 sq. ft. It was envisaged for setting up shops, offices, supermarkets, multiplex, food courts, and IT and ITES business.