Orders issued on Vigilance probe into KIIFB-financed land acquisition in Kannur

The 33rd meeting of the KIIFB held on October 25, 2018, approved the acquisition of 4,896 acres in Kannur district and 470 acres in Palakkad at a cost of ₹12,710 crore for establishing industrial zones.

The State government on Friday (October 30) issued formal orders for an investigation by the Vigilance and Anti Corruption Bureau (VACB) into procedural lapses alleged in the decision to acquire 4896 acres in Kannur district at a cost of ₹12,240 crore through the Kerala Infrastructure Investment Fund Board (KIIFB).

The order follows a recommendation made by the State Cabinet on Wednesday on the basis of the findings of an expert committee led by former bureaucrat Sudha Pillai which scrutinised KIIFB operations.

The 33rd meeting of the KIIFB held on October 25, 2018, approved the acquisition of 4,896 acres in Kannur district and 470 acres in Palakkad at a cost of ₹12,710 crore for establishing industrial zones.

The charge is that this decision was allegedly taken merely on the strength of a concept note prepared by the Kerala Industrial Infrastructure Development Corporation (KINFRA). It allegedly was not based on any comprehensive cost-benefit analysis founded on land requirement, financial viability and concrete projects. The KIIFB decision was taken during the previous LDF government’s tenure. In ordering the Vigilance probe, the UDF government noted that decision warranted an “urgent and comprehensive” investigation.

“Serious concerns have emerged over fiscal prudence, accountability and utilisation of public funds with respect to the decision to acquire the land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) without a clear and commercially pragmatic project structure or financial justification in a manner that entails huge financial liability on the treasury,” the order on VACB probe issued by Additional Chief Secretary Minhaj Alam said.

Whether the provisions of the LARR Act were adhered to in determining the price and compensation and whether real estate and vested interests played a role in the valuation process will be covered by the investigation. It will also examine whether the decision was in line with Section 6F of the KIIFB (Amendment) Act - which deals with project identification, prioritisation and implementation - and a set of guidelines issued in 2018.

Published - October 31, 2026 12:05 am IST