Vigilance wing pulls up Kochi Metro Rail Limited over lapses in auctioning commercial spaces

The vigilance wing of the Kerala government opened an inquiry into the way Kochi Metro Rail Limited (KMRL) sold its commercial spaces attached to metro stations. These spaces are a major source of revenue for the metro system, helping to offset operating costs and fund future expansions. The audit focused on the auction procedures used over the past two years, examining whether they complied with public procurement rules that require open notification and fair competition.

Investigators found that many of the auctions were announced only through internal channels, without the public advertisements normally required for government assets. In several cases only a single bidder submitted a proposal, suggesting that the lack of publicity limited the pool of interested parties. The report also noted that KMRL altered the base rates and the conditions for the earnest money deposit (EMD) midway through the process, moves that discouraged potential participants and gave the impression that existing bidders were being given preferential terms. This combination of opaque notices and shifting financial terms raised concerns about differential treatment among applicants.

The vigilance department has recommended that KMRL adopt a transparent, standardized auction framework that includes mandatory public notices, clear and unchanging financial conditions, and an independent oversight committee. Such measures are expected to restore confidence among developers, protect public revenue, and reduce the risk of legal challenges. The department has also warned that continued non‑compliance could attract penalties under the state's anti‑corruption statutes, urging KMRL to act swiftly to correct the identified lapses.