Archive · 11 Dec 2025
Kerala HC Hears KIIFB's Plea Against ED Action on Masala Bond
The Kerala Infrastructure Investment Fund Board (KIIFB) has asked the Kerala High Court to stop the Enforcement Directorate (ED) from taking action against it.
The ED says KIIFB used money from a special bond (Masala Bond) to buy land, which is not allowed.
KIIFB says the money was used for important projects in the state.
The court will decide on December 16 whether to stop the ED's actions.
This case is important because it could affect how Kerala gets money for big projects in the future.
KIIFB approached the Kerala High Court to quash the ED's adjudication notice regarding the 2019 Masala Bond transaction.
The ED alleges that KIIFB diverted Rs 467 crore of the Rs 2,672 crore raised to acquire land, violating FEMA provisions.
KIIFB argues that the funds were used for state development projects, not real estate, and denies any wrongdoing.
The ED insists that Masala Bond funds can only be used for projects on land already owned by the government or acquired without bond proceeds.
The High Court will consider an interim stay on the ED's proceedings on December 16, 2023.
- Who
- Kerala Infrastructure Investment Fund Board (KIIFB) and the Enforcement Directorate (ED)
- What
- Legal dispute over the use of Masala Bond funds
- When
- Hearing on December 16, 2023
- Where
- Kerala High Court
- Why
- Allegations of misuse of Masala Bond funds for real estate purchases
- Parties Involved
- KIIFB, Enforcement Directorate (ED), Kerala High Court, Chief Minister Pinarayi Vijayan, Former Finance Minister Thomas Isaac
- Amount in Question
- Rs 467 crore out of Rs 2,672 crore
- Alleged Violation
- Diversion of Masala Bond funds for real estate purchases
- KIIFB's Defense
- Funds used for state development projects, not real estate
- ED's Stance
- Funds used to acquire land, violating FEMA provisions
- Next Hearing
- December 16, 2023
- Potential Implications
- Impact on Kerala's infrastructure-funding model
