ED issues notice to CM Pinarayi Vijayan over alleged masala bond violations
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Thiruvananthapuram: The Enforcement Directorate issued a show-cause notice to Kerala Chief Minister Pinarayi Vijayan over alleged foreign exchange violations related to issuing state’s 2019 masala bond.
The notice was issued to former finance minister Thomas Issac and Kerala Infrastructure Investment Fund Board (KIIFB) CEO K M Abraham.
The complaint regarding this was submitted to ED Adjudicating Authority after more than three years of investigation.
The controversy surrounding the Masala bond comes back to haunt the ruling front at the run-up to local body polls.
The notice issued under the Foreign Exchange Management Act (FEMA) is linked to transactions amounting to Rs 468 crore, according to India Today.
Kerala was the first state in India to float rupee-denominated bonds overseas instead in local currency or US dollars in 2019.
Its debut issuance of bonds on the London Stock Exchange KIIFB raised approximately Rs 2,000 crore, which later touched Rs 2,150 crore.
The funds were raised for infrastructure projects as part of mobilizing Rs 50,000 crore for the state’s broader development plan.
It is reported citing ED there are allegations of diversion of funds alongside forex-related irregularities regarding bond proceeds.
The Central agency had summoned Thomas Issac earlier in January for questioning in the case.