Masala bond case; HC gives permission to ED to issue summons to Thomas Isaac

KOCHI: The High Court has allowed the ED to issue a fresh summons to former Finance Minister Dr. TM Thomas Isaacs in the case of violation of Foreign Exchange Rules in the Masala Bond issue related to KIIFB. The new order came as a renewal of the interim order issued earlier by the High Court to stay the issuance of summons to Thomas Isaac. High Court had expressed displeasure over the ED's action in seeking personal information in the summons issued to Thomas Isaac at first. Following this, the ED informed the High Court that they are ready to issue a fresh summons.

It was Thomas Isaac who approached the High Court against the Enforcement Directorate's investigation, alleging that KIIFB had violated the Foreign Exchange Act and had not obtained the Reserve Bank's approval in raising the masala bonds. Thomas Isaac alleged that the ED is continuously sending summons to him and asking him to produce unnecessary documents and that there is political interest behind the case. In the summons, it was also demanded to produce the documents of the financial transactions of the entire ten years, including those of the relatives. Thomas Isaac approached the court questioning all this.

ED sources indicate that a summons will be sent to Thomas Isaac in the next few days. The High Court has also given permission to Thomas Isaac and others to approach the court if there are any disputes regarding the newly sent summons. The case will be heard again on December 1.