The Enforcement Directorate (ED) has arrested Kerala Chief Minister Pinarayi Vijayan, former Finance Minister Thomas Isaac and Chief Minister’s Principal Secretary K. in the KIIFB Masala Bond case. FEMA has issued a show cause notice of Rs 466 crore to M. Abraham. Officials gave this information on Monday.
ED had issued this notice about 10-12 days ago under the provisions of the Foreign Exchange Management Act (FEMA). There is no need to appear in person.
In a FEMA case, a show cause notice is issued after the investigation is completed. The investigation pertains to the raising of Rs 2,000 crore by KIIFB through masala bonds and 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 had raised Rs 2,150 crore through its maiden masala bond ‘issue’ in 2019 as part of its plan to raise Rs 50,000 crore to finance large and critical infrastructure projects in the state. Masala bonds are bonds issued outside India, but denominated in Indian currency instead of the local currency.