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ED issues fresh summons to Kerala ex-FM Isaac in KIIFB masala bonds case

January 07, 2024 15:49 IST

The Enforcement Directorate has summoned senior Kerala Communist Party of India-Marxist leader Thomas Isaac for questioning in a Foreign Exchange Management Ac case linked to a probe into the alleged violations in the financial dealings of KIIFB during his tenure as the finance minister in the previous Left Democratic Front government, official sources said Sunday.

IMAGE: Kerala ex-finance minister and CPI-M leader Thomas Isaac. Photograph: ANI Photo

The 71-year-old politician has been asked to depose at the agency office in Kochi on January 12, they said.

 

The central agency in December had informed the Kerala high court that it had withdrawn the summons issued to Isaac.

The submissions were made during the hearing of a plea by Isaac and a Kerala Infrastructure Investment Fund Board official alleging that only personal information was sought through the summons by ED and seeking quashing of the same.

In view of the agency withdrawing the summons, the HC disposed of the petitions but at the same time, the court also said the ED was free to continue with its investigation into the matter.

ED sources said the fresh summons to Isaac has been issued in light of the HC allowing the agency to go ahead with the investigation, under the provisions of the Foreign Exchange Management Act, into the end use of Rs 2,000 crore raised by KIIFB through masala bonds and its compliance with the FEMA norms.

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 in 2019 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.

The ED suspects contravention of the FEMA here and hence initiated a probe.

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