Why was 1,000 acres acquired in Kannur? Kerala CM flags KIIFB irregularities

Thiruvananthapuram: Kerala Chief Minister V D Satheesan has alleged large-scale irregularities in the Kerala Infrastructure Investment Fund Board (KIIFB), saying its functioning had caused substantial financial losses to the government and bypassed the oversight of the Finance Department. He said the government was considering an inquiry into the allegations.

Speaking at a press conference while presenting the findings of an expert committee's review report, Satheesan said KIIFB had operated like an independent entity, creating significant financial liabilities for the government.

“The report contains serious observations about KIIFB. There were massive irregularities in land acquisition. KIIFB functioned as an independent empire, bypassing the control of the government and the Finance Department and creating a huge financial liability,” he said.

The Chief Minister also alleged irregularities in consultancy payments and said KIIFB's former chief executive officer had held two positions simultaneously. According to him, 99.4 per cent of the funds provided by the government had been used for loan repayment.

“One would be shocked to read the report,” he said.

Questions over land acquisition in Kannur

Satheesan said the report had flagged a loss of Rs 181.73 crore linked to masala bonds and raised questions about KIIFB's land acquisition practices, including additional payments for certain areas and alleged excessive expenditure.

He said KIIFB had approved the acquisition of 5,366 acres through the Kerala Industrial Infrastructure Development Corporation (KINFRA) in Kannur and Palakkad. However, only around 50 acres had been acquired over the past five years for setting up industrial parks and other purposes, while the remaining land lay unused, he alleged.

“Why was 1,000 acres of land acquired in Kannur? It is not known why the land was taken,” Satheesan said, adding that notifications had also been issued for 3,829 acres.

He alleged that as much as five times the actual value of the land had been spent on acquisitions and claimed that the process was marked by widespread irregularities.

The Chief Minister also questioned the regional distribution of KIIFB projects, stating that 41.6 per cent of its total projects were concentrated in just three districts. He cited the report as stating that Kannur alone accounted for 52.9 per cent, raising concerns about possible regional discrimination.

Allegations over advertisements and appointments

Satheesan alleged discrepancies in KIIFB's advertising expenditure. He said the board had spent Rs 203.72 crore on advertisements, while the amount reflected in its accounts was Rs 21.16 crore.

He also alleged that 498 people had been appointed without the required permission.

According to the Chief Minister, additional expenditure through KIIFB amounted to Rs 13,103 crore. He said the government would examine the expert committee's findings and decide on the appropriate course of action for an inquiry.

Satheesan maintained that the report was not politically motivated.

Cabinet decisions

Meanwhile, the state Cabinet approved several measures at its meeting.

A special fund of Rs 1 crore has been allocated to district collectors to respond to emergencies. The annual income limit for receiving assistance from the Disaster Relief Fund has been raised from Rs 2 lakh to Rs 3 lakh.

The Cabinet also approved the draft State Data Policy and allocated funds to purchase 152 new vehicles for the Revenue Department.