Relief for CM, others; Stay for ED notice on KIIFB Masala Bonds 

KOCHI: The Kerala High Court has stayed the Enforcement Directorate (ED) notice on the KIIFB Masala Bond. The stay is for three months. The high court's intervention is a relief to the chief minister, former finance minister Thomas Isaac and KIIFB CEO K M Abraham.

Thomas Isaac responded when he received the notice that it was a regular show of the ED and that the case was being stirred up during election time. The ED issued notices to the chief minister and others after finding a violation of FEMA regulations. The ED found that the money raised through the masala bond was used for infrastructure development, which was a violation of FEMA regulations. The ED filed a complaint in this regard before the adjudicating authority after a three-year investigation.

The government raised Rs 2150 crore in 2019 by issuing masala bonds at an interest rate of 9.72 percent on the London Stock Exchange. The decision to issue the masala bond was taken in a meeting chaired by the chief minister in January 2019. The ED found that the government misused foreign commercial loans.