By P. Sreekumaran
THIRUVANANTHAPURAM: In a clever U-turn on the low alcohol tax rate issue, Kerala Chief Minister V. D. Satheesan has tossed the ball into the United Democratic Front (UDF)’s court for a final decision on the matter. The Chief Minister wilted under pressure mounted by not only by the opposition parties but also by the Congress and allies.
It may be mentioned that the CM had taken a unilateral decision to lower the tax on low alcohol at the behest of a private liquor firm. The shocking decision was taken without discussing the matter in the Cabinet.
Not surprisingly, the Chief Minister’s arbitrary decision has evoked strong criticism from his ministerial colleagues too. Excise minister M. Liju, who was kept in the dark, Industries Minister P. K. Kunhalikutty and Home Minister Ramesh Chennithala have made no secret of their displeasure over the CM’s decision-making style.
In an apparent climb-down, Satheesan now says the issue will now be discussed with all the Front partners and then decide! If the UDF favours the sale of low alcohol beverages, then there will be tax rates. If the UDF decides against selling, they won’t be sold. It is a political decision. This was the contention of the CM.
The CM has sought to blame it all on the previous LDF Government by saying that it was that Government which had categorized low alcohol beverages as a new category as part of its liquor policy. His Government had only fixed the rates!
Incidentally, the decision has drawn strong criticism from the Congress leaders themselves. Former Kerala Pradesh Congress Committee (KPCC) president V. M. Sudheeran has written to the CM asking him to withdraw it as that is not part of the UDF manifesto.
What remains to be seen is whether Satheesan will succumb to the collective pressure or stick to his guns. In that case, he would be totally isolated not only in the party but also among the allies.
The Chief Minister is taking refuge behind the specious plea that it was only low alcohol beverage. But Indian Union Muslim League (IUML) chief Sadikali Thangal is on record that, low or high, alcohol is alcohol and a UDF Government should not favour easy availability of liquor.
As expected an alert Opposition promptly weaponised the issue to corner the CM. Leader of the opposition (LoP) Pinarayi Vijayan asked a pointed question. He said the only beneficiary of the decision is the private company, which will make crores from the move to lower the tax rate from 251% to less than half – 120%. The LoP also said that the company had approached the LDF Government too with a request to lower the tax. But his Government refused to oblige the firm, Pinarayi pointed out.
The whole episode has exposed Satheesan who has changed the stand he took as leader of the Opposition. He had accused the LDF Government of corruption in the matter. But now Satheesan finds himself in the dock facing allegations of corruption. Needless to say, the sordid episode has dented the credibility and reputation of Satheesan and given the UDF and the Government a bad name.
The saga of Satheesan somersault is not limited to the low alcohol tax rate issue. He has had to beat a retreat on the PM SHRI (Prime Minister Schools for Rising India) issue as well. LoP Satheesan had accused the LDF Government of signing the PM SH-HRI agreement in October 2025, agreeing to implement it. This being the reality, his government cannot go back on the issue by refusing to sign it. This is nothing but fantastic nonsense, to borrow a Nehruvian expression.
The LDF Government had withdrawn from the scheme within 20 days after informing the Union Government of its decision to keep it in abeyance in the larger interests of the State. The LDF Government had signed the agreement as the Centre had refused to release the SSK (Sarva Shiksha Karryakram) funds amounting to over 1500 crore. The UDF Government uttered a lie by saying that not only had the previous government signed the agreement but it had also received Rs 99.07 crore fund related to PM SHRI. This was another in the series of lies trotted out by the UDF Government. The fund released was part of the SSK funds and not PM SHRI funds. Moreover, the Union Government itself had admitted in an affidavit submitted to the Supreme Court that the LDF Government had not implemented the PM SHRI scheme. That clearly knocks the bottom out of the UDF claim that the Pinarayi Government had implemented the scheme
Legal experts also say that the UDF stand that it cannot withdraw from the Memorandum of Understanding (MoU) signed between Kerala Education Secretary and the his Union Government counterpart is wrong.
Article 299 of the Constitution stipulates the manner in which the union Government and the State Governments enter into legally binding contracts. As per the said Article, all binding contracts had to be expressed by the President of India and all contracts regarding the State Governments by the Governor. The apex court has also held that a contract entered into in violation of the procedure mentioned in Article 299 not in the name of the Governor of the State or the President is not a contract and is a nullity.
In the case under consideration, the MoU has been signed by the Education Secretaries of Kerala and the Union Government and not by the President and the Governor of Kerala. Hence the said MOU is a nullity. This is the legal position.
In both cases, the Satheesan Government has ended up with egg on its face. It will not be easy for the UDF Government to undo the damage inflicted by totally unacceptable stand of the Government. Will the CM now shed his habit of uttering blatant falsehoods and taking U-turns on issue after issue with lightning speed? The track record does not inspire confidence. (IPA Service)
