![[Masala Bonds Case] Kerala HC Criticizes KIIFB’s Thomas Isaac for Delaying ED Probe](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/image-27-4.png?resize=447%2C350&ssl=1)
Today, On 24th July, The Kerala High Court reserved its decision on petitions filed by the Kerala Infrastructure Investment Fund Board (KIIFB) and former State Finance Minister Dr. TM Thomas Isaac regarding the Enforcement Directorate’s (ED) summons in the masala bonds case. The court questioned the delay caused by challenging the summons and highlighted the need for compliance. This ongoing legal battle raises questions about jurisdiction and investigation procedures under the Foreign Exchange Management Act of 1999.
![[Masala Bonds Case] "Why only Kerala being probed by ED?": KIIFB to Kerala HC](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/image-46.png?resize=447%2C350&ssl=1)
Today, On 4th July, The Kerala Infrastructure Investment Fund Board (KIIFB) challenged the Enforcement Directorate’s (ED) investigation into the Masala Bonds case, arguing that the Reserve Bank of India (RBI) has sole authority over such matters. The case revolves around allegations of FEMA violations, with KIIFB and former State Finance Minister Thomas Isaac contesting summonses issued by the ED. The legal battle continues.
The Kerala High Court requested the Enforcement Directorate to provide specific instances of suspicious transactions related to the issuance of masala bonds by the Kerala Infrastructure Investment Fund Board (KIIFB). The court emphasized the need to justify the investigation and directed the ED to present examples to satisfy its concerns. The case involves allegations of violations of the Foreign Exchange Management Act (FEMA).
