The enforcement directorate has triggered yet another controversy by sending a notice to former finance minister of Kerala, Dr TM Thomas Isaac. They want to question him regarding the funding of the Kerala Infrastructure Investment Fund Board, or the KIIFB, during the previous government.
The KIIFB Act was passed in 1999. In 2016, the first Pinarayi Vijayan government amended it to widen its scope. Dr Isaac relied heavily on KIIFB to build roads, bridges, government offices, and schools. The fund was also used for acquiring lands for prestigious projects of the government, such as widening the NH, SilverLine project and industrial corridors. As a result, the change in terms of road infrastructure and buildings is very much visible in the state.
How does KIIFB make all this money? They borrow it. And why can't the government borrow money directly instead of KIIFB? The video explains it all.