Leader of the Opposition Pinarayi Vijayan | Photo Credit: ANI

The proposed sale of a 49 per cent stake in Adani Vizhinjam Port Pvt Ltd (AVPPL) to the Mediterranean Shipping Company (MSC) has sparked a fresh political controversy in Kerala, with Leader of the Opposition Pinarayi Vijayan approaching the SEBI seeking an investigation into the transaction.

In a letter to SEBI, Vijayan alleged that the port operator failed to disclose the proposed transaction to the Kerala government despite the concession agreement mandating prior approval for any transfer involving a significant change in ownership.

Adani Ports and Special Economic Zone had informed SEBI on June 29 that it had entered into a definitive agreement to sell a 49 per cent stake in its subsidiary, AVPPL, to Terminal Investment Limited (TiL), the port-operating arm of the MSC Group, the world’s largest container shipping company.

Raising the issue in the Kerala Legislative Assembly on July 1, Vijayan said the State government had not been consulted before the proposed stake sale. Responding to the matter, Chief Minister V. D. Satheesan stated that the government had neither received a request for prior approval nor any formal intimation from Adani regarding the transaction.

According to Vijayan, a proposal of this magnitude must undergo administrative scrutiny by the Ports Department, legal examination by the Law Department and financial evaluation by the Finance Department before any approval is granted.

He pointed out that the concession agreement governing the Vizhinjam International Seaport stipulates that any transfer of 25 per cent or more of the equity in the concessionaire amounts to a change in ownership, requiring the Kerala government’s prior approval on grounds of national security and public interest. The proposed transfer of a 49 per cent stake, he argued, clearly exceeds this threshold.

Vijayan urged SEBI to seek an explanation from Adani Ports, direct the company to clarify the Kerala government’s position under Regulation 30(11) of the Listing Obligations and Disclosure Requirements (LODR) Regulations, and initiate appropriate proceedings if any violations are established.

He also raised concerns over the strategic implications of the deal, arguing that allowing the world’s largest container shipping line to acquire a substantial stake in Vizhinjam Port could affect the port’s long-term competitiveness.

According to him, Vizhinjam’s growth depends on attracting multiple global shipping companies operating on a common-user basis, and the presence of a dominant shipping line as a major shareholder could discourage rival carriers and limit the port’s appeal as a neutral transshipment hub.

Published on July 6, 2026