Kerala Chief Minister Pinarayi Vijayan
Credit: PTI Photo
Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan and two others were reportedly issued notices in connection with a probe by the Enforcement Directorate into the suspected FEMA violations in issuing Masala bonds to raise foreign funds for the Kerala Infrastructure Investment Fund Board.
Apart from Vijayan, notices were sent to former finance minister and CPM leader Thomas Isaac and KIIFB chief executive officer K M Abraham.
As per reports, the adjudicating authority for issues under the Prevention of Money Laundering Act is now considering the matter. The notices were issued on the basis of an ED report citing irregularities in issuing Masala bonds in the London stock exchange for raising funds for KIIFB that funds the public infrastructure development in the state.
It was in 2019 that KIIFB issued Masala bonds (bonds issued outside India denominated in Indian rupee) in the London stock exchange to raise Rs. 2,150 crore.
The Comptroller and Auditor General had earlier raised irregularities in KIIFB's Masala bond and even termed it unconstitutional.
The Chief Minister, who is now on a visit to the UAE, is yet to comment on the fresh development.