KIIFB land acquisition: Vigilance probe ordered into Kannur dealings

THIRUVANANTHAPURAM: The state government has ordered a Vigilance investigation into KIIFB’s acquisition of land in Kannur for industrial development, involving expenditure of thousands of crores of rupees on land riddled with quarry pits. The Cabinet decided to entrust the Vigilance Department with an investigation, with the assistance of the Finance and Revenue departments, into lapses in granting approval for the land acquisition. Kerala Kaumudi had earlier reported irregularities in the acquisition process.

KIIFB purchased 2,074 acres of hilly terrain in Kannur at Rs 2.49 crore per acre without approval. The price was five times the market value. The original plan to acquire 1,000 acres was changed, and the authorities decided to acquire 4,896 acres in Kannur in four phases. Nothing has been done on the land purchased for Rs 1,000 crore in the past six years. A technical committee appointed by the High Court had found that construction on the land was not feasible.

Rules stipulate that administrative expenses for land acquisition for major projects must not exceed 2.5 per cent of the land value. However, KIIFB calculated administrative expenses of more than Rs 1,900 crore for the acquisition. For complex land acquisition processes for railway projects, administrative expenses are limited to five per cent, while the limit for other Central government projects is one per cent. The Vigilance Department will investigate this aspect as well.

Budget announcement revised

• The 2016-17 Budget had announced the acquisition of 1,000 acres at Panayathparamba in Pattannur, Kannur. This was subsequently changed, and the decision was taken to acquire 4,896 acres in Kannur.
• Based on a letter from the KIIFB CEO, administrative approval was granted for land acquisition worth Rs 12,727 crore in Kannur and Palakkad districts.
• KIIFB cannot acquire land without a Cabinet decision and a Budget announcement.
• Even if the land is sold now, the government would not recover even one-fifth of the amount invested. Loan repayments and interest have become a huge financial burden on the government.