Kozhikode: The Corporation Council has decided to sue the Mumbai-based CMS Company on charges of violating a 10-year-old agreement for installing and maintaining traffic signals in the city.

Mayor M. Bhaskaran, who chaired the council meeting on Tuesday, told the council that the civil body would cancel the agreement with the company, remove all the traffic structures and the advertisements on them. It would also initiate legal steps to recover advertisement tax amounting to Rs.7.5 crores.

As per the agreement, the company was to set up and maintain traffic signals. It was allowed to earn revenue by putting up advertisements on the traffic signal boards and structures. Several notices issued to the company were responded with `false' replies that the traffic system was functioning in the city, Mr. Bhaskaran said.

The company was summoned for a meeting in December, 2005. When its representatives failed to attend the meeting, the corporation recommended that the District Collector cancel the agreement and take legal action.

Mr. Bhaskaran also said that the corporation was in the process of holding discussion with Keltron for setting up traffic signals in the city.

After CPI(M) councillor V.V. Sivadasan moved a calling attention motion, citing an audit report, the council decided to initiate action against corporation officials involved in the financial irregularities of the Kudumbasree Thrift Project.

Democratic Indira Congress (Karunakaran), DIC(K) member Pushpalatha demanded action against those dumping construction materials by the roadside. This, she said, was a hazard to road users and led to accidents.

A resolution condemning the alleged attack on the house of Indian Union Muslim League(IUML) member Suhara Avaran was rejected by voting in the council meeting.

The IUML member Mamukoya Haji moved the resolution. All the nine DIC(K) members voted with the LDF members against the motion. While seven voted in favour, 35 voted against the resolution.

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