The orders issued on the Vigilance probe will probe the KIIFB-funded land acquisition in Kannur

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

The state government on Friday (October 30) issued formal orders for a probe by the Vigilance and Anti Corruption Bureau (VACB) into procedural lapses in the decision to acquire 4,896 acres in Kannur district at a cost of ₹ 12,240 crore through the Kerala Infrastructure Investment Fund Board (KIIFB).

The order follows the state cabinet’s recommendation on Wednesday based on the findings of an expert committee headed by former bureaucrat Sudha Pillai that was probing the operations of KIIFB.

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

It is alleged that this decision was allegedly taken only on the basis of a concept note prepared by the Kerala Industrial Infrastructure Development Corporation (KINFRA). It was allegedly not based on any comprehensive cost-benefit analysis based on land requirements, financial viability and specific projects. The KIIFB decision was taken during the tenure of the previous LDF government. While ordering the Vigilance probe, the UDF government noted that the decision required an “urgent and comprehensive” investigation.

“There have been serious concerns about the fiscal prudence, accountability and use of public funds regarding the decision to acquire 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 rationale,” the Treasury issued a huge financial liability on additional financial commitments to the VACB minister. said Minhaj Alam.

Whether the provisions of the LARR Act were followed in determining the price and compensation, and whether real estate and property interests played a role in the valuation process, will be the subject of an investigation. It will also examine whether the decision was in line with section 6F of the KIIFB (Amendment) Act, which deals with the identification, prioritization and implementation of projects, and the set of guidelines issued in 2018.

Published – 31 Oct 2026 0:05 AM IST