Masala bond: KIIFB submits affidavit rejecting ED's claim of Thomas Isaac's involvement

KOCHI: KIIFB has denied ED's allegation that former finance minister Thomas Isaac was instrumental in issuing masala bonds abroad to raise funds. CEO Dr KM Abraham stated in the affidavit filed in the High Court that the Rs 2,150 crore raised through the bond was repaid on March 27. The functioning of KIIFB is managed by the Governing Body and the Executive Committee. The Vice-Chairman has no role other than presiding over the meeting.
KIIFB is the first state-level agency to raise funds from abroad. The collected Rs 2150 crore was allocated for 339 infrastructure development projects. The CEO has been appointed as the fund manager. The Reserve Bank has not objected to the utilization of funds. According to the KIIFB affidavit, approval is given by the Executive Committee for projects costing up to Rs 100 crore and by the General Body for projects costing more than that.

The High Court will hear the pleas filed by KIIFB and Thomas Isaac challenging the ED's summons on Friday.