This Article is From Sep 25, 2022

Ex-Kerala Minister Not Cooperating With Probe In Masala Bonds Case: Probe Agency

The ED is probing the issuance of Masala Bonds by KIIFB which had later informed the court that permission for the issuance of the financial instruments were obtained from the Reserve Bank of India.

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India News

Enforcement Directorate said Thomas Issac was trying to stall the investigation. (File photo)

Kochi:

The Enforcement Directorate (ED) has said that former state Finance Minister Thomas Isaac was not cooperating with the probe into the financial transactions of the Kerala Infrastructure Investment Fund Board (KIIFB).

In an affidavit submitted by the ED before the Kerala High Court on Saturday, the agency said Isaac was making baseless allegations against the agency.

It said Mr Isaac was trying to stay away from the probe and stall the investigation.

The ED is probing the issuance of Masala Bonds by KIIFB which had later informed the court that permission for the issuance of the financial instruments were obtained from the Reserve Bank of India.

The probe agency had earlier issued multiple notices summoning Isaac to appear before it. Isaac had also moved the High Court against the ED.

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It said Mr Isaac was trying to stay away from the investigation, making baseless allegations against the ED and was trying to flee from the jurisdiction of the central agency and stall the probe.

The ED has the authority to investigate the Foreign Exchange Management Act (FEMA) violation during the distribution of Masala Bonds, the agency said in the affidavit.

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It said the investigation is in the primary stage and hence cannot say anything about the role of Isaac.

"The summons to produce the documents were part of the investigation," ED said.

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During hearing of Isaac's plea, the high court had asked why ED cannot question someone if it has any doubts and at the same time it told the probe agency that privacy of an individual cannot be violated.

Left leaders and MLAs had also moved the joint plea in the high court against the ED probe alleging that the same was a "fishing and roving" exercise aimed at discrediting the KIIFB.

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