The Kerala High Court has stayed Enforcement Directorate proceedings under FEMA against Chief Minister Pinarayi Vijayan and former Finance Minister Thomas Isaac in the KIIFB Masala Bonds case, granting interim relief and halting adjudication for three months.
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).
The Kerala High Court urged former Finance Minister Thomas Isaac and the Kerala Infrastructure Investment Fund Board to consider cooperating with summons from the Enforcement Directorate in the Masala Bonds case. Emphasizing a preliminary inquiry and judicial oversight, the court’s proposal aims for a fair process. Legal and financial implications make this a crucial case for Kerala’s development agenda.
