Published Oct 18, 2026 | 4:41 PM ⚊ Updated Oct 18, 2026 | 4:44 PM
CPI(M) leader Pinarayi Vijayan.
Opposition leader Pinarayi Vijayan on Sunday, October 18, defended land acquisitions linked to the Kerala Infrastructure Investment Fund Board (KIIFB), rejecting allegations of irregularities raised by Chief Minister V.D. Satheesan.
Vijayan accused Satheesan of misrepresenting the procedures followed in acquiring land for infrastructure projects, particularly in Kannur.
The former chief minister maintained that land acquisitions were carried out under established legal provisions and that compensation was determined through the prescribed process, rather than through arbitrary payments to landowners.
“Land is not acquired by taking money out of a desk drawer and handing it over,” he said, questioning whether critics understood the legal framework governing it. He added that landowners dissatisfied with the compensation could approach the courts to seek a revision.
Defending projects planned in Kannur, including science and IT parks, Vijayan said the previous CPI(M)-led government had identified multiple locations, but land availability and the pace of implementation had influenced the choice of sites. He questioned the criticism focused on the Kannur district, arguing that development in one region should not be portrayed as political favouritism.
Citing schools and hospitals established across districts, he maintained that KIIFB had helped Keralam expand its infrastructure without discriminating against particular regions.
Vijayan was responding to CM Satheesan’s statements regarding the findings of an expert committee. According to the CM, the committee appointed by the UDF government had identified major irregularities in KIIFB’s functioning during the LDF regime, including land purchases at prices reportedly as high as five times the market value.
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According to the findings of the Sudha Pillai Committee, the LDF government acquired 5,366 acres in Kannur and Palakkad for Rs 12,727 crore. The report also questioned the limited progress of projects planned on the acquired land, even five years after the purchases.
In Kannur, the Kerala Industrial Infrastructure Development Corporation (Kinfra) acquired 1,000 acres for Rs 2,409 crore, while a notification was issued to acquire another 3,829 acres for Rs 9,572 crore. The Sudha Pillai Committee also flagged instances of Kinfra paying above-market rates for land. The committee’s scrutiny extended beyond land acquisition to KIIFB’s borrowing and the state government’s guarantees for its loans.
According to the committee, official file notings indicated disagreements between the Finance Department and the state leadership over the guarantees. In June 2023, then Finance Secretary Bishwanath Sinha allegedly advised against continuing to provide guarantees to KIIFB, warning that its borrowings could reduce Keralam’s borrowing capacity.
Finance Minister K.N. Balagopal allegedly backed the department’s concerns in a note dated October 20, 2023, stating that KIIFB’s borrowings could worsen the state’s liquidity position and disrupt day-to-day government operations. Balagopal also said further guarantees should be considered only if the Supreme Court delivered a favourable verdict on Keralam’s borrowing limits. The state had challenged the Centre’s decision to include KIIFB borrowings within its annual borrowing limit.
However, a meeting convened by then chief minister Pinarayi Vijayan on June 5, 2024, allegedly decided to proceed with the guarantees despite the concerns raised by the Finance Department.
The Sudha Pillai Committee found that only the first three guarantees, covering KIIFB borrowings of Rs 18,246.73 crore up to November 2021, had received the Finance Department’s sanction.
Even in those cases, the guarantee deeds and details such as tenure, interest rates and other borrowing conditions had not been submitted to the department for approval.
Subsequent guarantees were issued by KIIFB’s Finance-Infrastructure wing based on approval from a Deputy Secretary in the Finance Department, without the approval of the Finance Secretary, Finance Minister or Council of Ministers, the committee noted. It also said that no competent authority in the Finance Department had access to the files of KIIFB’s Finance (Infrastructure) wing. The committee concluded that overriding the Finance Department’s decision was inconsistent with the government’s Rules of Business. It said such a decision could be overruled only by the Council of Ministers, following which the department would have to issue a government order in accordance with the Cabinet decision.
The findings have placed KIIFB’s land acquisition costs, project implementation and borrowing arrangements under renewed scrutiny.
(Edited by Fayisa CA)
