ED issues notice to CM, Thomas Isaac over KIIFB masala bond

THIRUVANANTHAPURAM: The Enforcement Directorate (ED) has issued notices to many including Chief Minister Pinarayi Vijayan in the financial dealings of the Kerala Infrastructure Investment Fund Board (KIIFB) masala bond. The ED issued notices to the chief minister and others after investigation found Foreign Exchange Management Act (FEMA) regulations had been violated. In addition to Chief Minister Pinarayi Vijayan, notices have also been issued to former finance minister Dr Thomas Isaac and KIIFB CEO K M Abraham. The ED filed a complaint in this regard before the adjudicating authority after a three-year investigation.

The ED has found that using the money raised through the masala bond for infrastructure development was in violation of FEMA regulations. In 2019, the government raised Rs 2150 crore by issuing masala bonds at an interest rate of 9.72 percent on the London Stock Exchange. The decision to issue the masala bonds was taken in a meeting chaired by the chief minister in January 2019. The ED has found that the government misused foreign commercial loans.

It is reported that the notice can be replied to in person or through a representative or lawyer. The adjudicating authority will take the necessary decision after hearing both sides.