File records show that K.N. Balagopal had opposed the continuation of borrowing through KIIFB, Thiruvananthapuram, when he was the Finance Minister. Balagopal objected when the central government started cutting off the loans taken by KIIFB from the amount that the state government was entitled to borrow.
The then Finance Secretary had noted in the file that KIIFB's borrowing would be detrimental to the government. Following this, Balagopal warned that any kind of borrowing by KIIFB would affect the limited finances and day-to-day functioning of the government.
Balagopal also pointed out that borrowing through KIIFB would not affect the government only if the Supreme Court ruled in its favour in a case related to debt ceiling. He also asked Chief Minister Pinarayi Vijayan to show the file. However, KIIFB continued to raise funds despite the Finance Minister's dissatisfaction.
