ED issues fresh summons to former Kerala minister in KIIFB masala bond case

The ED has issued a fresh summons to senior Kerala CPI(M) leader Thomas Isaac for questioning in the FEMA case related to the investigation into alleged violations in the financial transactions of KIIFB during his tenure as finance minister in the previous LDF government. Official sources gave this information on Friday. The 71-year-old politician has now been asked to appear at the agency office in Kochi on January 22, he said. Earlier he was called on January 12 but he did not come.

The central agency had informed the Kerala High Court in December that it had withdrawn the summons issued to Isaac. These submissions were made during the hearing of a plea by Isaac and a KIIFB official alleging that only personal information was sought by the ED through the summons and sought quashing of the same.

In view of the withdrawal of summons by the agency, the HC disposed of the petitions but at the same time, the court also said that the ED is free to continue its investigation in the case. ED sources said the fresh summons to Thomas was issued in the light of the High Court directing the agency to pursue investigation under the provisions of the Foreign Exchange Management Act (FEMA) into the end use of Rs 2,000 crore raised by KIIFB. Was allowed. Masala Bond and it is in compliance with FEMA norms.

KIIFB (Kerala Infrastructure Investment Fund Board) is the primary agency of the state government for financing large and critical infrastructure projects and raised Rs 2,150 crore through its first masala bond issue in 2019, bringing the total large-scale funding to Rs 50,000 crore. Part of the mobilization plan. Important infrastructure projects in the southern state. ED suspects FEMA violations here and hence has launched an investigation.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)