Were KIIFB guidelines, land acquisition laws violated in ₹12,240 cr Kannur land deal? Govt orders Vigilance probe

Thiruvananthapuram: The Kerala government has ordered a Vigilance probe into alleged procedural lapses in the acquisition of 4,896 acres of land in Kannur district through the Kerala Infrastructure Investment Fund Board (KIIFB), involving an expenditure of ₹12,240 crore.

An order issued by the Vigilance Department on Friday authorised the Vigilance Director to conduct a detailed investigation into the procedures followed in approving the land acquisition.

The probe will examine whether the acquisition complied with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and whether there were irregularities in the assessment of land value and determination of compensation.

It will also look into the criteria and norms adopted for identifying and acquiring such a large extent of land, and whether any interference or irregularities occurred during the valuation process. The investigation will examine possible links with real estate transactions or vested interests that may have influenced the acquisition decision.

The order also raises questions about whether the decision complied with Section 6F of the KIIFB (Amendment) Act, 2016, and the guidelines issued in 2018. Changes made to the land parcels selected for the project will also come under scrutiny.

The government order noted that the decision to acquire such a vast extent of land was taken without a comprehensive cost-benefit analysis establishing its necessity and economic viability or 'clearly identifying commercially viable projects'. The decision was reportedly based on a concept note submitted by KINFRA.

The acquisition had received approval at the KIIFB board's 25th meeting held on October 25, 2018. The board had approved the acquisition of 5,336 acres in Kannur and Palakkad districts at an estimated cost of ₹12,710 crore. Of this, 4,896 acres were earmarked for Kannur and 470 acres for Palakkad.

The government said a detailed and urgent investigation was necessary into the circumstances surrounding the decision and the financial structure of the acquisition, given the potential burden on the public exchequer.

Earlier on Wednesday, the Cabinet had recommended a Vigilance probe into the matter.

The decision came following questions raised by Chief Minister V D Satheesan over KIIFB's land acquisition activities in Kannur. On October 27, Satheesan announced an inquiry into the acquisition during discussions in the Kerala Assembly, questioning the purchase of around 1,000 acres using public funds and referring to an expert committee's assessment that the land had diminished value.

The issue returned to the Assembly on October 28 during a discussion on KIIFB's future, with questions raised about the nature of the land acquired and its intended use.