In 2022, a broker approached Sethumadhavan’s family, who own seven acres in Elappully in Palakkad district in Kerala. The broker claimed that they needed three acres to build a college. The price offered to the family was lower than market rate.
“My brother thought it would be beneficial for the community and children of our village. He agreed to the sale,” said Sethumadhavan P, a stocky grey-haired farmer whose four acres abuts this land.
The family didn’t think much about it until, in early 2025, they saw their land featured in local news. It was not a college, but a liquor company coming up in the land. "If the company starts operating, I will not be able to cultivate there. It will become a wasteland," said Sethumadhavan.
The proposed alcohol manufacturing plant, to be built and operated by Oasis Commercial Private Limited, had set off a political firestorm in this non-descript village in January this year.
Allegations include land fraud, violations of Kerala’s land and industrial policies, and threat to groundwater. Local farmers, like Sethumadhavan, accuse the company of acquiring land through false pretenses. Oasis is accused of violating norms that place ceilings on land ownership by industries as well as limitations on acquiring agricultural lands.
The nearby Korayar river is already polluted from the sprawling Kanjikode Industrial Area, and a bottling plant 5km away has deepened anxieties about water depletion. Also hanging over Elappully is the ghost of Plachimada, where a historic protest movement forced the closure of a Coca-Cola factory after it decimated local water resources.
Despite severe groundwater stress in the region, the state government has been accused of pushing ahead with the liquor and ethanol manufacturing plant without conducting impact assessments or consulting the local panchayat, where the Congress party is in power.
The Opposition has accused the ruling Pinarayi Vijayan-led government of corruption, including changing policies in favour of the brewery. The Chief Minister has categorically denied the allegations.
Ten months have passed since the row broke out but the conflict shows no signs of abating. The Elappully panchayat has decided to move the Kerala High Court against the state government for infringing on local body rights. On September 27, 2025, Oasis representative S Gopikrishnan and a group of workers arrived at the proposed brewery project site in the early morning with a JCB and a tractor for clearing work. However, they withdrew following strong protests from local residents.
The proposed ethanol/alcohol manufacturing plant of Delhi-based Oasis Commercial Private Limited is being constructed on 23.92 acres of land at a cost of Rs 600 crore.
A January 2025 order by the Finance Department said the complex will have an Extra Neutral Alcohol (the base product of liquor, cosmetics and industrial products) storage capacity of 16 lakh litres, generate five lakh Liters Per Day of ethanol, distill 3,000 litres of malt spirit/brandy/wines and 100 million litres of beer per annum.
The factory is bound to change the face of Elappully. But, villagers and the panchayat were kept in the dark until construction was set to begin.
The company started the land purchase process in December 2022 and completed it six months later. Panchayat documents seen by TNM show that six brokers, including a ward member, acted as intermediaries in the acquisitions. Land was purchased from 10 individuals for between Rs 25,000 to Rs 40,000 per cent. Taxes – which are paid to the local Panchayat during these transactions – were paid in the name of the intermediaries.
Much like Sethumadhavan, Elappully Panchayat president K Revathi Babu, found out about the alcohol company coming up in her backyard through media reports. "When I asked the farmers in the area, they said that they did not know that the land was purchased for the company. Some told me that land was bought by Prayaga, which is constructing an Arts and Science college here,” she said.
Revathi then sought records of all land transactions and cross-checked with farmers. Nearly 7.5 acres had been sold to Oasis in the name of building a college. “When I asked the management of Prayaga College about this, they denied making these transactions,” she said.
Among those who claim to have been defrauded by brokers is a family from the Dalit community in the village. The family had tilled the land on lease for over 30 years. A decade ago, the family were handed over a hand-written note from the landlord transferring this one acre plot to them.
Chandran (who uses only one name), the eldest of their seven children, effectively looked after the land. Panchayat tax records show that the family had been paying taxes on the land. “In 2022, a man approached us saying he’d ensure documents were prepared and he would sell the land. He even gave us Rs 50,000 as advance after I signed some papers,” said Chandran.
The man had convinced them that he’d sell the land within two months and give them the whole amount. The promised amount never came. “I returned Rs. 50,000 to the broker and asked him to return the land," Chandran said. This too did not happen.
Instead, in early 2025, the family found out that the brokers had sold the entirety of their land to Oasis. “We went to the village office to enquire. The office said the land was never in our name. They said it belonged to a brewery,” said Chandran.
Suspecting forgery, the family filed a complaint with the police, revenue department and the SC/ST department. The Elappully Panchayat said that since the family had no documentation, no action could be taken.
At the end of the acquisition, Oasis owned 17.9 acres of dry land and 5.9 acres of wetland.
"A company can never purchase land in the name of an individual, it must be registered in the company's name. When a person is appointed to buy land on behalf of a company, it constitutes a benami transaction,” said G Motilal, former tehsildar and former chairman of the Joint Council of State Service Organisations.
But, the acquisitions may have violated the Kerala Land Reforms Act of 1963, where the area of land that can be held by a person is 12 to 15 acres. The State Land Board had recommended a “surplus land case” against the company. A letter by the Under Secretary in the Revenue Department on June 27, 2025 states that the company had submitted an application seeking exemption under the act and this was “being examined”.
Apart from the nature of transactions, Oasis is under the scanner for attempting to convert four acres of wetlands that are included in the data bank under the Paddy Field and Wetland Conservation Act.
The Palakkad Revenue Divisional Officer (RDO) had rejected the company’s initial application to change the category of land included in the data bank. “No legal action has since followed. The company has now resubmitted an application to change the land type. The company has said the diversion is for a public purpose and the application has been resubmitted through the Agriculture Department and is being examined by the Agriculture Production Commissioner,” Palakkad RDO Sasidharan TG told TNM.
G Motilal, the former Tahsildhar, says that the cabinet can issue an order to change the classification. “If the company claims it will convert the wetland areas into a rainwater tank without changing the category, nothing can be done legally," he said.
Elappully is home to over 39,000 people, a majority of whom depend on paddy cultivation and animal husbandry. On the surface, it may seem like a verdant green village with plenty of ponds, open wells and canals.
However, behind this facade is a brewing water crisis. The Korayar river, which flows through the village, has become polluted due to the sprawling Kanjikode Industrial Area nearby. Release of water in canals is erratic, while open wells dry during summers. Paddy farmers say they have shifted from the Ponmani variety of rice to the ‘Uma’ variety which requires less water.
Panchayat records show over 2,800 borewells have been drilled for drinking water and irrigation. “In terms of drought and water scarcity, Elappully panchayat is classified as a red zone. We spend around Rs 15 lakh just to supply drinking water through tankers,” said Revathi Babu.
The Detailed Project Report (DPR) for Oasis’s plant is unavailable, but it is estimated that it would need upwards of 5 lakh litres of water daily just to produce ethanol.
The Kerala government initially announced that the Kerala Water Authority would supply the water required for the project. While the Water Authority had in-principle approval the same day, the Authority rescinded the permission once the controversy heated up, claiming Oasis had misled them by not mentioning liquor production.
Responding to the fears of groundwater exploitation, Excise Minister MB Rajesh said the company would collect rainwater and use it for plant operations. Of the 24 acres acquired, five would be used for rainwater storage.
The January 2025 order by the Finance department says that rainwater harvesting can ensure “exploitation of water can be completely avoided”, making it the first-of-its-kind in Kerala.
Excise Minister Rajesh cited the example of the existing rainwater harvesting system at the Ahalia Health Heritage and Knowledge village, which spans 800 acres in Kozhippara, nearly 10 km away. Here, rainwater harvesting structures spread over 100 acres.
"Each of the 15 rainwater harvesting ponds in Ahalia is spread over five acres. How will this factory expect to get all the water this factory needs over just five acres?" asked K Revathi Babu.
Rainwater harvesting in the region can’t be solely relied upon for industrial water supply, says Lakshmi R Chandran, Head of the Zoology Department at NSS College Nemmara, Palakkad. Their groundwater monitoring shows 98.4% of available groundwater has already been exploited. This is exacerbated by uneven annual rainfall: for instance, in 2018, the area had 2,041.85mm of rainfall, but was just 789.49mm in 2016.
“There is considerable fluctuation from year to year, which poses challenges for groundwater recharge. It’s impossible to rely solely on rainfall for water,” she said.
Elappully’s fears also stem from their experiences with the soda bottling company, Varun Beverages (which manufactures Pepsi and other brands for PepsiCo) at the Kanjikode Industrial Area some 5km away. The factory was started in 2000, but by 2010, a report by a Kerala Legislative Assembly panel found that the company was consuming 48.5% of the local groundwater. They suggested the factory curb its usage by 75%. In 2020, the factory closed due to water shortage.
Manoj V, who cultivates rice and coconut in 1.45 acres near the proposed Oasis brewery, said during the operations of Varun Beverages, the groundwater depth went from 150 to 350 feet. “We could see the water supply improve when the factory shut down,” he said. “But, now, a new plant is coming in its place. We’ll see water depletion again.”
Revathi said it had taken them time to ensure some sense of water security. Rainwater harvesting structures, cleaning of public wells and desilting of ponds have improved groundwater levels. In 2022, these efforts were recognised when the Panchayat won the National Water Awards 2020 institute by the Jal Shakti Ministry. “Giving permission to a company that relies on water as an input will undermine what we’ve painstakingly restored," she said.
The Kerala High Court has directed that deemed permission (a provision under which a building permit is considered granted if the panchayat does not issue a decision within 30 days) shall not apply until then.
The brewery had attempted to secure deemed permission after its application to the panchayat did not receive approval. However, the panchayat administrative committee brought this to the Court’s attention, and the Court ruled that deemed permission would not be applicable to the brewery. A decision regarding construction and related matters will be taken only after the final verdict.
Meanwhile, an application was submitted to the Agriculture Officer for the construction of a six-acre rainwater storage tank. The Agriculture Officer rejected the request, returning the file with the instruction that the land should be preserved for agricultural use.
In addition, an application has been filed with the panchayat for a building permit. This application is currently under consideration in the Assistant Engineer’s section.
“The company had not sought police protection, yet two jeeps and a bus carrying police personnel reached the site. That worries us. We have therefore decided to intensify the strike,” said Sivan Mannukad, a leader of the People’s Struggle Committee.
The other fear that drives villagers is the memory of Plachimada, which was home to the now landmark protest movement against a coca cola factory, 20 km south of Elappuly. The state’s high power committee report had found that the plant had not just severely depleted groundwater, but the waste from the plant polluted water sources.
Government documents claim that the Oasis brewery will be a “zero discharge” plant. However, not all are convinced. "The Korayar river is behind the proposed brewery. Any leakage, any discharge will pollute this river further,” said Dr Chandran.
Elappully’s factory takes root through a June 2021 report on ethanol blending by NITI Aayog. The policy – which is being controversially implemented in 2025 – hopes to reduce India’s crude oil imports by replacing 20% of petrol with Ethanol.
Ethanol production was incentivised through single-window environmental clearances and fast-track approvals. In May 2023, Oil Marketing Companies issued Expressions of Interest seeking proposals to establish plants in ethanol-deficit states, including Kerala. To qualify, companies had to show proof of land ownership and water availability among other eligibility.
Oasis Commercial Private Limited had already acquired land at Elappully. On June 16, 2023, they applied and received initial permission for water supply from the Kerala Water Authority (which was later rescinded). Of the 133 applicants for the EoI, Oasis was shortlisted for ethanol production in Kerala.
In the meantime, the Kerala government amended its liquor policy in 2023–2024 that encouraged the production of extra neutral alcohol required for liquor production. Oasis submitted an application seeking to produce ENA in their ethanol plant, and on January 16, 2025, the Kerala cabinet accorded permission for the Oasis factory under its liquor policy.
“(Oasis) has a rich experience of successfully executing similar projects in the states of Haryana, Punjab, Rajasthan, Madhya Pradesh and Uttar Pradesh over the last 20 years,” states the cabinet note circulated among ministers for initial approval for the plant.
Oasis is owned by Deep Malhotra, an ex-MLA with the Shiromani Akali Dal party in Punjab. Controversy is not new to the company that produces over 220 million liters of liquor annually in Madhya Pradesh, Haryana and Punjab. In 2023, the company’s director Gautam Malhotra (son of Deep Malhotra) was arrested by the Enforcement Directorate on money laundering charges linked to alleged irregularities in Delhi’s Excise policy (where, former Delhi Chief Minister Arvind Kejriwal and his deputy Manish Sisodia were arrested).
In 2022, farmers had staged a months-long sit-in protest against extensive water extraction and contamination of groundwater around the Oasis plant in Ferozepur. Operations were ceased following the protests, and the case is still being heard in the National Green Tribunal.
According to the Central Pollution Control Board, breweries fall under the red category, which means they are considered high-pollution industries. However, the Elappuly project has been given a go-ahead without requiring mandatory clearance from the State Pollution Control Board and the Environmental Impact Assessment (EIA) Authority.
“The state’s EIA authority must conduct the environmental impact study: this includes assessing biodiversity, pollution levels and groundwater availability,” said Bobby Thomas, Kerala High Court advocate specialising in environmental law. The process also entails a public hearing. “If 60 percent of the people who participate oppose the project, the EIA authority will not grant permission to operate,” he said.
In Elappully, the cudgels against the project have been drawn. Meanwhile, in March 2025, a Public Interest Litigation was filed in the High Court by a range of parties including Church leaders and a protest committee comprising residents. The court has temporarily stayed approval granted by the District Town Planner.
Even if Oasis’s application for the construction of the industrial complex is approved by the town planner, the local Panchayat has resolved not to give the plant permits for construction.
The News Minute has reached out to Oasis and the Excise Commissioner seeking a response on allegations of corruption. The Excise Commissioner replied, stating that “the requested details and information are not currently available” with the department. This article will be updated once the reply from Oasis is received.
(Jamsheena Mullappatt is an independent journalist based in Kerala and a researcher at Land Conflict Watch. With over a decade of experience, she writes on marginalised communities, land rights, human rights, environmental justice, climate change, and caste-based injustice.)