Malappuram (Kerala)/Hyderabad, Jan 30 (PTI) Congress leader V D Satheesan on Thursday alleged that BRS leader K Kavitha, daughter of former Telangana Chief Minister K Chandrasekhar Rao and an accused in the Delhi liquor policy scam, had visited Kerala in connection with the approval for a brewery unit in Palakkad, a charge dismissed by the former MP.

Kavitha termed Satheesan's allegations as "baseless and defamatory" and said she will be compelled to take legal action if the Congress leader does not retract his "false statements".

Satheesan alleged Kavitha "arrived in Kerala for the Oasis Commercial Private Limited Company." Speaking to the media, the Leader of Opposition in the Kerala Assembly demanded an investigation into Kavitha's stay in the state.

"There were several mysterious deals behind the allocation of the brewery plant," he alleged reiterating opposition's claim that the decision was made without consulting the concerned government departments.

Satheesan stated that the decision to give permission to the Oasis Commercial Private Limited Company to set up "liquor manufacturing plants" was taken unilaterally by Chief Minister Pinarayi Vijayan and Excise Minister M B Rajesh.

Responding, Kavitha said the allegations against her are nothing more than a desperate, "reckless attempt by the Congress to grab cheap political attention." She said she categorically rejects the "fabricated claims" of Satheesan aimed at maligning her reputation.

"Let me make this clear, if Mr Satheesan does not issue an immediate and unconditional retraction of his false statements, I will be compelled to take stringent legal action to hold him accountable for this malicious slander and to protect my integrity," she said in a statement to PTI in Hyderabad.

The opposition UDF had on Wednesday released a cabinet note substantiating their claims against the LDF government on the brewery issue.

The note dated January 15 clearly mentions that no discussion was held with any other departments on the matter, according to Satheesan.

He alleged that the state government altered the liquor policy to benefit Oasis Commercial Private Limited, which had purchased land in the area before the policy change.

"How did the company know in advance that the liquor policy would be amended," he asked, accusing the government of tailoring the policy to suit the company.

Satheesan criticised the Excise minister MB Rajesh for defending the project and pointed out that the company has not yet responded to the allegations.

He also dismissed Rajesh's claim that the setting up of the brewery project would help in saving a GST loss of Rs 210 crore, calling it a false propaganda, and said that the brewery is not subject to GST.

Senior Congress leader Ramesh Chennithala also on Thursday demanded that the government withdraw its approval for the brewery project. He alleged a massive corruption in granting permission to a private company.

"The government moved ahead with the project without informing any departments or consulting with its constituent parties. It unilaterally approved the project without taking anyone into confidence. Moreover, permission was granted to a company linked to the Delhi liquor policy corruption case," Chennithala alleged.

He reiterated his stance that corruption was involved in the decision.

"During the E K Nayanar government, permission for a brewery was granted only after following due procedures. However, this time, the liquor policy was amended to facilitate the project," he said.

Chennithala pointed out that LDF constituent CPI has strongly opposed the move, while another ruling coalition member, the JD(S) has also expressed its disagreement.

"The government is proceeding without the support of its own allies," he said.

He also criticised Chief Minister Pinarayi Vijayan's response in this regard, in the Assembly.

"Instead of addressing my question, the Chief Minister merely countered with allegations in the Assembly," Chennithala said. PTI ARM SJR GDK SA