CM moves High Court demanding cancellation of ED notice on Masala Bonds

KOCHI: Chief Minister Pinarayi Vijayan has filed a petition in the High Court against the notice issued by the Enforcement Directorate (ED) alleging a violation of the 'FEMA' regulations in the Masala Bond case. The Chief Minister pointed out in the petition that the ED action is politically motivated and requested that the notice be cancelled. The Chief Minister informed the court that there was no violation of the FEMA regulations.

The ED has issued notices to the Chief Minister and KIIFB alleging that the Foreign Exchange Management Act (FEMA) was violated by the use of the funds generated through Masala Bonds for acquisition of land. The High Court had stayed further action on the notice against KIIFB. The stay is for three months. The action was taken on a petition filed by KIIFB against the notice of the ED Adjudicating Authority.

Justice VG Arun's interim order made it clear that detailed arguments in the petition need to be heard. Meanwhile, Additional Solicitor General ARL Sundaresan, appearing for the ED, requested that instead of granting a complete stay, a direction be given to provide an explanation in the notice. He also informed that further action will be taken only subject to the court's decision. The court said that it would consider the matter if it were given in writing.