Bharatiya Janata Party (BJP) leader Kummanam Rajasekharan on Friday, 16 October demanded an immediate and comprehensive investigation into alleged irregularities in the Kerala Infrastructure Investment Fund Board (KIIFB)'s land acquisitions and financial transactions, particularly in Kannur district, even as the state Cabinet prepares to decide the nature and scope of any probe. The demand follows Chief Minister V.D. Satheesan's acknowledgement that an expert committee's findings on KIIFB's functioning were 'serious.'

What the BJP Has Alleged

Kummanam, a member of the BJP National Executive Committee, named former Chief Minister Pinarayi Vijayan, former Finance Minister K.N. Balagopal, and former KIIFB Chief Executive Officer K.M. Abraham as individuals whose roles should be scrutinised. He demanded that those found guilty face legal action.

The BJP leader specifically flagged allegations of excess expenditure of ₹13,103 crore on KIIFB projects, a loss of ₹181.73 crore through masala bond transactions, and spending of ₹203.72 crore on advertising and promotional activities. He called for independent verification of these figures through official records.

The Kannur Land Acquisition Question

At the centre of the controversy is the scale of land acquisition in Kannur, where, according to Kummanam, more than 1,000 acres were reportedly acquired. He questioned whether these acquisitions were necessary, how land prices were determined, and whether private interests received undue benefits.

Kummanam also flagged a disparity in development priorities, asking the state government to explain why Kannur saw disproportionately large land acquisition compared with districts such as Thiruvananthapuram and Ernakulam, which arguably have greater infrastructure needs.

Financial Controls and Governance Concerns

Beyond land deals, Kummanam alleged that KIIFB had bypassed established financial controls and questioned whether its decisions complied with the law and the government's Rules of Business. He sought scrutiny of the institution's borrowings, government guarantees, and overall financial liabilities.

The former CEO's administrative powers, alleged dual positions, consultancy contracts, and appointment procedures were also cited as areas requiring examination to establish whether required approvals and standard recruitment norms were followed.

What the State Government Has Said

Chief Minister V.D. Satheesan told reporters on Thursday that the expert committee's findings on KIIFB's functioning were serious and that the state Cabinet would decide the nature of the probe, with a decision expected shortly. The government has not yet indicated whether it would opt for a Vigilance inquiry or a Central Bureau of Investigation (CBI) probe — the latter being what the BJP is pushing for if preliminary findings establish evidence of corruption or criminal activity.

What Happens Next

The Kerala Cabinet's decision on the investigation's form and scope is now the critical next step. Kummanam urged the government to immediately secure relevant documents and trace the flow of funds, warning against any dismissal of allegations without examining official records. How the Satheesan government responds will signal both its willingness to hold its predecessor accountable and its appetite for a politically sensitive inquiry into a flagship infrastructure body.