ED Issues FEMA Notice Over KIIFB Masala Bonds as Kerala CM Denounces Move

Overview

• The Enforcement Directorate served notices to Chief Minister Pinarayi Vijayan, former finance minister Thomas Isaac, and KIIFB CEO K. M. Abraham.
• The agency alleges Rs 466.91 crore from masala bond proceeds was used for land acquisition in breach of RBI norms and in violation of FEMA.
• According to the ED, KIIFB raised Rs 2,672.80 crore through rupee-denominated bonds listed on the London Stock Exchange under the ECB route.
• Vijayan dismissed the action as an election-time political move and said the government and the board will challenge it legally.
• KIIFB, set up in 2016 to fund infrastructure, is credited by the state with expanding projects from an initial Rs 50,000 crore plan to over Rs 90,000 crore.