Thiruvananthapuram: A controversial licence granted for iron ore mining at Chakkittapara near Kozhikode in Kerala took another twist on Tuesday, with a person claiming to be close to the affair alleging that the entire deal was done on the basis of a bribe of Rs50 million (Dh2.9 million).

Bharatiya Janata Party leader K. Surendran had earlier alleged that the quarry and mining licences given to a Karnataka company to mine at the site was with the knowledge of Communist Party of India Marxist leaders in the previous Left Democratic Front government in the state.

Speaking to local television channels, Subair, who was the driver of one T.P. Naushad, alleged that Naushad was a go-between for the bribe and that former industry minister Elamaram Kareem knew of the deal. Subair alleged that Naushad was a close confidante of Kareem. Kareem did not immediately respond to the allegation.

Communist leader Binoy Viswom said that he did not believe Kareem would be party to such a deal, while government chief whip P.C. George said the CPM should bring the corrupt to light. Following controversy over the possible environment degradation of the Western Ghats by the iron ore mining at Chakkittapara, the industry department had decided to cancel the mining licence given to the company. Chakkittapara also happens to be one of the 123 villages in the state which are listed in the recent Kasturirangan report, where restrictions are sought to be placed in order to preserve the environment.