Serious irregularities flagged in KIIFB review report; CM V D Satheesan alleges major land acquisition fraud

THIRUVANANTHAPURAM: Chief Minister V. D. Satheesan has announced a detailed investigation into alleged irregularities in the Kerala Infrastructure Investment Fund Board (KIIFB), citing serious findings in its review report. He said KIIFB had sidelined the Finance Department and committed major irregularities in land acquisition. The Chief Minister also pointed out that KIIFB's decision to bypass the Finance Department's recommendation that government guarantees were not required for KIIFB loans violated the Rules of Business.

"More than half of the land acquisition carried out by KIIFB was in Kannur. The actual expenditure on advertisements was ten times higher than the amount shown in the accounts. Several KIIFB projects are not revenue-generating," he said.

Briefing the media on the decisions taken at the Cabinet meeting, Satheesan said the state's borrowing limit had been reduced due to KIIFB-related activities. He described the expenditure under KIIFB as wasteful and said the state had to pay an additional Rs 396 crore annually in interest. He further said the KIIFB-related activities had resulted in an additional expenditure of Rs 1,250 crore, while the loss arising from the masala bond amounted to Rs 183 crore.