₹12,252 crore land deal raises questions over alleged financial irregularities and possible benami transactions; Kerala government examining report
Thiruvananthapuram: A report by an expert committee has raised questions over large-scale land purchases made through the Kerala Infrastructure Investment Fund Board (KIIFB) in Kannur, recommending a vigilance investigation into possible financial irregularities and suspected benami transactions.
The state government is examining the report, according to the information available. The recommendations have brought renewed attention to the rationale behind acquiring nearly 1,000 acres of land in Kannur while questions remain over why the Vizhinjam port region was not prioritised.
Questions Over KIIFB’s Land Acquisition
One of the key issues raised is whether the land acquisition had the necessary approvals and a clear basis in the state budget during 2016–17. Questions have also been raised about whether KIIFB had the legal authority to take such decisions independently or whether Cabinet approval or a specific budgetary announcement was required.
According to the figures cited in the report-related account, ₹12,252 crore was spent on acquiring land in Kannur. The account also states that KIIFB’s total assets at the time stood at around ₹16,000 crore, raising questions about the proportion of funds committed to the land purchases.
The scale of the expenditure has prompted calls for greater clarity on the planning, assessment and justification behind the acquisition.
Land Valuation and Compensation Under Question
The report-related information also raises questions about the increase in land values following the acquisition. Land that reportedly had a much lower value before the purchase is said to have attracted significantly higher compensation after KIIFB entered the transaction.
The actual market value of the land, the compensation paid to owners and the financial implications of the acquisition are among the issues that may require detailed examination.
There were also reports of an attempt to secure loans by pledging the acquired land as collateral. However, banks reportedly declined to extend the requested financing after assessing the land’s value. The circumstances surrounding the proposed loan and the valuation of the property remain points requiring clarification.
Expert Panel Recommends Vigilance Investigation
The expert committee has reportedly recommended a vigilance probe to determine whether financial irregularities or benami transactions took place during the land acquisition process.
The government is examining the report, and further action may follow after its assessment. The allegations have not been established as proven wrongdoing, and the findings of any official investigation will be crucial in determining whether irregularities occurred.
The key questions remain why such a substantial land purchase was undertaken in Kannur, what approvals and assessments supported the decision, and whether the expenditure served the intended development objectives.
Benami Transaction Allegations, Kerala Government, Vizhinjam Port, KIIFB Expert Committee Report
