ED to probe masala bond also, sends letter to RBI seeking details

THIRUVANANTHAPURAM: The Enforcement Directorate (ED) will conduct a probe in KIIFB’s masala bond also. The ED has given a letter to the Reserve Bank of India (RBI) seeking details of the approval given for it. The government had earlier asserted that they have the approval of the RBI for it.

CAG’s report submitted to the government in KIIFB had sparked a controversy in the state. The CAG's report pointed that the money was collected through masala bond listed on London Stock Exchange.

Meantime, the government has started taking steps to face legally the CAG report mentioning KIIFB. Fali S Nariman, senior advocate of the apex court will argue the case which is in the high court. Directions on it have been given to the standing council in Delhi. The move is to face legally CAG’s argument that there is no permission for KIIFBY to take loan and for including the things which are not in the draft in the final report. The decision of the CPM and the government are to face legally and politically the references of CAG.