ED issues show-cause notices to Kerala CM Vijayan in KIIFB masala bond probe
ED issues show-cause notices to Kerala CM Vijayan in KIIFB masala bond probe
ED shows-cause in FEMA breach linked to KIIFB masala bonds; notices to Vijayan, Isaac, and K.M. Abraham for ₹466.91 crore.
The Enforcement Directorate has issued show-cause notices to Kerala Chief Minister Pinarayi Vijayan, former Finance Minister T.M. Thomas Isaac, and KIIFB Chief Executive Officer K.M. Abraham on November 12 for alleged FEMA violations tied to the masala bond issued by the Kerala Infrastructure Investment Fund Board (KIIFB). The notices allege contravention of FEMA provisions and RBI master directions by KIIFB and its authorities, involving ₹466.91 crore. The ED details that the funds raised through rupee-denominated masala bonds were used to purchase land, a use that the RBI master direction of June 1, 2018, prohibits under these circumstances. The masala bonds were issued on the London and Singapore stock exchanges to mobilise funds through external commercial borrowing, amounting to ₹2,672.8 crore.
The notices, issued by the adjudicating authority within the ED, indicate that the Chief Minister, Isaac, and Abraham are not required to appear in person. The development has sparked political commentary, with opponents framing the ED action as a tactic during elections, while supporters call for due process.
Reactions from Kerala’s political spectrum were swift. CPI(M) Kerala secretary M.V. Govindan framed the notices as a political ploy by the BJP during the election period to destabilise Kerala. Isaac described the notices as politically motivated, and opposition leaders criticised the timing and insisted on transparency and legal scrutiny. KPCC chief Sunny Joseph dismissed the notices as a recurring pattern and suggested skepticism about their timing and intent.
Cover image source: ED issues show-cause notice to Kerala CM Pinarayi Vijayan in KIIFB masala bond probe 🔗
