A discussion on the supplementary demands for grants in the revised Budget in the Assembly was the best chance for the LDF to take apart the Sudha Pillai Committee report on KIIFB.

Instead, what was on show in the Assembly on Tuesday was Chief Minister V D Satheesan not only imparting oratorical flair to the Committee's complex technical findings but also piling on more serious charges against KIIFB. The Opposition MLAs looked so lost that they had no more role in the proceedings than well-groomed guests ushered in to fill the chairs during the recording of a popular television show.

The Chief Minister even ordered an enquiry into KIIFB's land acquisition in Kannur. Earlier, before the CM's turn, former finance minister K N Balagopal had attempted a namesake defence of KIIFB.

"Can any land be taken in violation of laws?" Balagopal said. "KIIFB just disburses the money and the land is acquired by the Revenue Department. That too, by adhering to existing state laws. It is ignorance that makes one say that land acquisition is concentrated in one district. I know there are many members who say such things without knowing the facts," the former finance minister said.

Like combat sportsmen who take a few steps backwards to summon the right forward momentum, the Chief Minister walked back to the start, to 2016 when he moved his legal objection against KIIFB in the Assembly.

"Right then I said it (functioning of KIIFB) was against Article 293 of the Constitution (which deals with the borrowing of states). I said it will be impossible to sustain such off-budget borrowings. One day they will bring it within our borrowing limit, and when that happens I said we will not be able to bear it," he said, and then pointing to Balagopal, added: "It was on you such a fate befell in 2022." (It was during the 2021-22 fiscal year that the Centre decided to include KIIFB's borrowings within Kerala's open market borrowing limit.)

The CM said that Balagopal himself had said in 2022 that the state could not stand guarantee for KIIFB loans. "He said so because he was aware, more than anyone else, of the burden KIIFB had heaped on him," Satheesan said. A recently leaked cabinet note had shown that the then finance minister had spoken against continued support to KIIFB. "But the Chief Minister convened another meeting and decided to provide sovereign guarantee to KIIFB bypassing the Finance Department," the CM said.

He said the Finance Department had no role other than to transfer funds from the Budget to KIIFB. "On the strength of these budgetary funds, KIIFB borrowed money at whimsical rates of interest. It borrowed money at rates of interest far higher than the open market borrowings of the state. And the Finance Department's role was to stand guarantee for such fanciful borrowings of KIIFB," the CM said. "The Finance Department has no idea of KIIFB recruitments either. There are employees in KIIFB who are paid more than even the Chief Secretary," he said.

The CM said that during the 2025-26 election year, KIIFB spent ₹203.72 crore on advertisement and promotion. "But its books showed just ₹21.16 crore. It required an audit to reveal the exact figures," Satheesan said, and quickly told Balagopal: "I know you have no role in this." This was an insult disguised as a reassurance. The CM was subtly indicating that the Finance Department was so feckless that it was fully shut out of KIIFB's operations.

Now, after gaining the necessary political momentum, the CM came to the land acquisition in Kannur. "How many acres do you want in Kannur," he began. "Fine, you purchased 1000 acres. But an 11(1) notification (under Land Acquisition, Rehabilitation and Resettlement Act, 2013) has been issued to purchase another 4000 acres. The Act says that the purchased land can be mortgaged. But when an attempt was made to mortgage these lands (1000 acres) in a bank, it was found that it would not fetch even one-fifth of the price paid to acquire these land parcels," the CM said.

There were more bullets in the CM's firearm. "A good chunk of these 1000 acres are quarries. This was land from which quarries had dug up 6-10 metres for rocks, and it is this land that had been purchased using KIIFB money," he said.

And what was done on this land? "No idea. What has been done there? Absolutely no idea. Still, in 2021, an additional 4000 acres have been notified for acquisition in the very same district. If we plan to purchase this land now, we will have to give an interest of 12 per cent for the preceding six years. The amount will blow up to over ₹10,000 crore," the CM said.

The land acquisition in Kannur will be investigated, the CM said. "All irregularities committed using public money will be investigated. If no such probe is conducted, we will be held accountable," he said.

Satheesan had yet another question. "A major port is coming up in Vizhinjam, export-import activities have already begun. What if they had purchased at least 500 acres near the port? We could have achieved business development worth ₹5,000-10,000 crore. We could have used the land as equity and attracted investments that could have generated over 5,000 jobs. But they did not acquire any land in Thiruvananthapuram or even in Kochi or Kozhikode. But only in Kannur," the CM said.

The CM then read out one of the recommendations of the Sudha Pillai committee. 'The CAG should do a performance audit of KIIFB for a period of ten years from 2016-17 to 2025-26'. "I have no idea how many will go behind bars when such an audit is conducted," the CM said.

Notably, there was not even a murmur of protest all this while from the Opposition benches. Eventually, Balagopal got up and it was not to offer a fitting reply to the CM's taunts but to ask him whether his government would continue the fight in the Supreme Court. The LDF government had moved the Supreme Court against the Centre's decision to deduct KIIFB's annual borrowings from Kerala's open market borrowing limit. "If we win the case in Supreme Court, Kerala will get an additional annual borrowing space of ₹36,000 crore," Balagopal said.

The CM's response was ruthless. "Assume that Supreme Court accepts our arguments and we get an expanded borrowing space but who will bear the burden of the debts accumulated by KIIFB? It would come to a stage when even Secretariat and our collectorates would be attached. KIIFB functions on borrowed money, it stands on a mounting pile of debt," the CM said, a clear indication that he has no plans to revive KIIFB.

After remaining silent for almost the entire duration of the CM's speech, the LDF members eventually staged a walkout. But by then, there was not an inch of the Chief Minister's sword of eloquence that was not covered with LDF blood.