Overview
- The chief minister said on Tuesday that all alleged irregularities at the Kerala Infrastructure Investment Fund Board will be investigated and warned that a CAG audit could lead to prosecutions.
- A Sudha Pillai‑led expert panel found projects run through KIIFB cost about Rs 13,103 crore more than if departments had executed them and estimated outstanding KIIFB borrowings at Rs 31,681.15 crore with a total funding need of about Rs 70,415.54 crore to finish projects.
- The report documents governance lapses including bypassing the state Finance Department, appointing 498 staff against 40 sanctioned posts, fixing pay without finance approval, and questionable spending and publicity outlays.
- The panel highlighted large, contested land purchases in Kannur and Palakkad financed partly through high‑interest HUDCO loans and said much of the acquired land remains unused, raising questions about cost and purpose.
- The UDF government is weighing liability restructuring but coalition partners are split because dismantling KIIFB could delay or stall ongoing projects, forcing a trade‑off between accountability and project continuity.