ED issues notice to CPM leader Thomas Isaac for violations in financial dealings of KIIFB

Thiruvananthapuram, July 19: In a major jolt to the CPI(M) party as ED has summoned a senior party leader Thomas Isaac in connection with an investigation into alleged violations in the financial dealings of Kerala Infrastructure Investment Fund Board (KIIFB). The ED has asked the CPI(M) leader to appear before the agency on Tuesday.

 

The ED is probing whether KIIFB violated the Foreign Exchange Management Act (FEMA). According to 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 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.

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