The Enforcement Directorate (ED) has served a Foreign Exchange Management Act (FEMA) show-cause notice worth Rs 466 crore to Kerala Chief Minister Pinarayi Vijayan, former finance minister Thomas Isaac and the Chief Minister’s chief principal secretary K M Abraham in connection with the KIIFB Masala Bond case, according to a PTI report.
Probe in KIIFB masala bond case
The notice, which does not mandate their physical appearance, was sent roughly 10-12 days ago by the central agency under FEMA provisions. In FEMA-related cases, a show-cause notice is issued after investigators complete their probe, and the alleged violation mentioned in it effectively equates to a financial penalty.
The inquiry focuses on how KIIFB utilised the Rs 2,000 crore raised through its masala bond issuance and whether the transaction complied with FEMA rules.
The Kerala Infrastructure Investment Fund Board (KIIFB), which was constituted for raising resources for major public infrastructure in the state, entered the masala bond market in 2019, securing Rs 2,150 crore as part of its broader plan to generate Rs 50,000 crore for key development projects.
The Kerala CM has not spoken about the ED notice in the masala bond case. His last post on social media, which was shared a few minutes back, talks about World AIDS Day.
“This World AIDS Day, Kerala renews its commitment to strengthening HIV prevention and ensuring dignified care for all. By closing gaps, expanding treatment and combating stigma, we move closer to a future free of new infections,” the post on X (formerly Twitter) read.
CM keeps receiving notices from time to time: Muraleedharan
“The Chief Minister keeps receiving notices from time to time. The intention is to force him into taking a pro-BJP stand, especially with the elections approaching. But no matter who tries to lift the BJP, it will not rise. They may try to intimidate occasionally, but eventually they will settle down,” Senior Congress leader K Muraleedharan was quoted by ANI as saying.