Kerala Awaits Probe Into KIIFB Land Acquisitions CM Satheesan To Decide On Nature Of Probe

(MENAFN- IANS) Thiruvananthapuram, Oct 17 (IANS) All eyes are now on Chief Minister V.D. Satheesan to announce the nature of the probe into the controversial KIIFB land acquisitions in Kannur, where thousands of acres were allegedly bought at exorbitant prices, raising serious questions about financial irregularities, procedural violations and the burden on the public exchequer.

One of the first decisions of Satheesan after he took over in May this year was to appoint a panel of experts to conduct a comprehensive study on KIIFB, and it was early this week they submitted its findings.

It was first placed in the state assembly, following which Satheesan made a presentation on the rip-off conducted by the Vijayan government, especially during his second term 2021-26.

Satheesan has said there will definitely be a probe, and the only question remains: which agency will be given the task of it.

The issue has assumed political significance following Satheesan's Friday response to former Finance Minister Thomas Isaac's claim, made a day earlier, that KIIFB had Rs 30,000 crore in cash and investments.

Citing KIIFB's official website and audit records, Satheesan said its total reserves as of March 31, 2026, stood at Rs 10,633 crore.

Of this, Rs 4,128 crore was the government's Treasury corpus fund, leaving actual investments at Rs 6,521 crore.

He also pointed to KIIFB's liabilities of around Rs 32,000 crore.

Isaac is yet to provide a detailed response to the figures cited by the Chief Minister.

The exchange has brought renewed attention to KIIFB's financial position and the decisions taken during the previous CPI(M)-led government.

The more serious questions concern the acquisition of land in Kannur through KINFRA.

KIIFB funds were used to acquire 1,044 acres at Kolari in Iritty and 1,030 acres at Koodali.

The reported expenditure of Rs 12,727 crore was financed through loans from HUDCO.

The acquisitions have come under scrutiny over the reported price of Rs 2.49 crore per acre and allegations that proper approvals were lacking.

Large stretches of the acquired land reportedly remain unused, raising questions about their industrial potential and the wisdom of incurring substantial borrowing costs.

The State Budget had envisaged acquiring 1,000 acres at Pattannur.

However, the acquisition plan reportedly expanded considerably, with Rs 2,489 crore transferred to KINFRA and a tripartite agreement signed among KINFRA, the government and KIIFB.

A further proposal to acquire 3,829 acres for Rs 9,572 crore has also raised concerns, even as earlier acquisitions remain underutilised.

The government is expected to consider whether the allegations warrant a Vigilance investigation, a comprehensive audit by the Comptroller and Auditor General, or both.

The choice of probe, its scope and the accountability of those involved will be closely watched.

For now, the central question is whether Satheesan will order a formal investigation into the alleged irregularities and how far it will go in examining the decisions taken under the previous government.

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