The 71-year-old politician has now been asked to depose at the agency office in Kochi on 22 January, they said.
Published Jan 19, 2024 | 2:51 PM ⚊ Updated Jan 19, 2024 | 2:51 PM
Former Kerala finance minister Thomas Isaac. (South First)
The Enforcement Directorate (ED) has issued a fresh summons to senior Kerala CPI(M) leader Thomas Isaac for questioning in a FEMA 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 LDF government, official sources said on Friday, 19 January.
The 71-year-old politician has now been asked to depose at the agency office in Kochi on 22 January, they said. He was earlier called on 12 January but he did not turn up.
Previously, the central agency, in December 2023, had informed the Kerala High Court that it had withdrawn the summons issued to Isaac.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 Thomas Isaac and a KIIFB official alleging that only personal information was sought through the summons by the ED and seeking quashing of the same.
In view of the agency withdrawing the summons, the high court disposed of the petitions, however, at the same time, the court also said that the ED was free to continue with its investigation into the matter.
ED sources said that the fresh summons to Thomas Isaac was issued in light of the high court allowing the agency to go ahead with the investigation, under the provisions of the Foreign Exchange Management Act (FEMA), into the end use of ₹2,000 crore raised by KIIFB through masala bonds and its compliance with the FEMA norms.
KIIFB (Kerala Infrastructure Investment Fund Board) is the primary agency of the state government for financing large and critical infrastructure projects and raised ₹2,150 crore in 2019 through its debut masala bond issue as part of its plan to mobilise ₹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.
Constituted by the LDF government in 1999, the KIIFB claims to be a principal funding arm of the Government of Kerala: A flagship project by the government aimed at building large public infrastructure projects in Kerala.
The Chief Minister of Kerala is the chairperson of the board, and the Finance Minister is its Vice-Chairperson.
The RBI on 1 June 2018, granted the KIIFB permission to raise foreign loans.
Since then, the Opposition in Kerala has constantly criticised the government for its use of masala bonds — the name given by the International Finance Corporation (IFC) for bonds issued in rupees — for infrastructure projects in the state.
(With PTI inputs)
