The central agency had informed the Kerala High Court in December that it had withdrawn the summons issued to Isaac.
Published Jan 07, 2024 | 5:45 PM ⚊ Updated Jan 07, 2024 | 6:06 PM
Former Kerala finance minister Thomas Isaac. (South First)
The Enforcement Directorate (ED) has summoned 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 Sunday, 7 January.
The 71-year-old politician has been asked to depose at the agency office in Kochi on 12 January, they said.
The central agency had informed the Kerala High Court in December that it had withdrawn the summons issued to Isaac.
The submissions were made during the hearing of a plea by Isaac and a KIIFB 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 high court 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 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.
Kerala Infrastructure Investment Fund Board (KIIFB) is the primary agency of the state government for financing large and critical infrastructure projects and had 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 in Kochi and hence initiated a probe.
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