New Delhi: The Enforcement Directorate (ED) has served notice to senior CPI(M) leader Thomas Isaac seeking his appearance before it in connection with an investigation into alleged violations in the financial dealings of Kerala Infrastructure Investment Fund Board (KIIFB) when he was finance minister in the previous LDF government, official sources said on Monday.
The ED is probing whether KIIFB violated the Foreign Exchange Management Act (FEMA). According an ED official, the foreign borrowings through ‘masala’ bonds – rupee-denominated bonds issued outside India by Indian entities – is a violation of FEMA
“Enforcement Directorate has served a notice to the former Kerala Finance Minister Thomas Isaac to appear before it on Tuesday. The notice was served to gather information on financial transactions regarding the Kerala Infrastructure Investment Fund Board,” sources said.
During the campaign for the state assembly elections last year, Union Finance Minister Nirmala Sitharaman had criticised the functioning of the KIIFB, alleging that the Comptroller and Auditor General (CAG) has criticised its financial dealings. She had also termed as “questionable” the operation of KIIFB.
KIIFB is the primary agency of the state government for financing large and critical infrastructure projects and in 2019 raised Rs 2,150 crore through its debut masala bond issue as part of its plan to mobilise Rs 50,000 crore to fund large and critical infrastructure projects in the southern state. (With inputs from ANI)