8 months ago
Kerala HC Stays ED Notice to CM Vijayan
The Chief Minister of Kerala, Pinarayi Vijayan, has gone to the Kerala High Court to challenge a notice from the Enforcement Directorate (ED).
The ED says that the state's infrastructure fund board (KIIFB) broke some rules when they raised money from overseas investors.
The ED thinks that some of the money was used to buy land, which is not allowed.
The Chief Minister and the KIIFB say they followed all the rules and that the money was used for important projects.
The court has temporarily stopped the ED from taking any action for three months, but the ED is trying to get that decision reversed.
The Chief Minister says the ED is doing this for political reasons.
The court will decide soon whether to keep the temporary stop or not.
Chief Minister Pinarayi Vijayan challenged the ED's show-cause notice in the Kerala High Court, alleging politically motivated action.
The ED claims Rs 467 crore of the Rs 2,672 crore raised through Masala Bonds was used for purchasing land, violating FEMA provisions.
The KIIFB and state government maintain that funds were used for development and infrastructure projects, including land acquisition.
A single bench of the High Court granted a three-month stay on the ED's notice, which the ED is challenging.
The Chief Minister's petition asserts compliance with RBI norms and denies any breach of foreign exchange regulations.
- Who
- Chief Minister Pinarayi Vijayan, Enforcement Directorate (ED), Kerala Infrastructure Investment Fund Board (KIIFB), Former Finance Minister Thomas Isaac, K M Abraham (Chief Principal Secretary and KIIFB CEO)
- What
- Legal challenge against ED's show-cause notice alleging FEMA violations in Masala Bonds funds
- Where
- Kerala High Court
- When
- Chief Minister approached the Kerala High Court on Wednesday; next hearing expected on Thursday
- Why
- Alleged violations of FEMA provisions in the utilisation of funds raised through Masala Bonds
Key facts
- Parties Involved
- Chief Minister Pinarayi Vijayan, Former Finance Minister Thomas Isaac, K M Abraham (Chief Principal Secretary and KIIFB CEO)
- Legal Issue
- Alleged violations of the Foreign Exchange Management Act (FEMA) in funds raised through Masala Bonds
- Funds Raised
- Rs 2,672 crore through Masala Bonds
- Disputed Fund Usage
- Rs 467 crore allegedly used for purchasing land
- Court Actions
- Single bench granted a three-month stay on ED's show-cause notice; ED challenged the stay
- CM's Allegation
- ED's action is politically motivated
- KIIFB's Stance
- Funds used strictly for development and infrastructure projects
- Next Hearing
- Expected on Thursday
Timeline
ED's bribery scandal sparks probe into agency's activities.
Then, ED serves show cause notice to Kerala CM over bond case.
He promptly challenges ED's notice in High Court.
Vijayan battles ED over alleged KIIFB Masala Bond irregularities.
Sources
ED challenges Kerala High Court stay on KIIFB Masala Bond probe
Kerala HC stays proceedings on ED’s show-cause notices to CM Vijayan, others in Masala Bond case
Kerala HC stays further proceedings on ED show cause notice to CM Vijayan, others
Kerala HC stays ED notice against CM Vijayan over infrastructure investment fund’s masala bonds
