Masala bonds case: ED notice to Vijayan, ex-min

Apart from the two leaders, KM Abraham, chief executive officer of Kerala Infrastructure Investment Fund Board (KIIFB), has also been issued a notice, added the official quoted above. The trio has been asked to explain, via a lawyer or chartered accountant, why adjudication proceedings should not start in the case against them.

The central agency has alleged that KIIFB, a government arm formed to raise funds for large infrastructure projects in the state, used ₹466.91 crore, part of the over ₹2000 crore it raised through the issue of rupee-denominated bonds or masala bonds, to purchase land — an action prohibited under FEMA and the RBI master direction dated June 1, 2018.

In 2019, under the LDF government, KIIFB raised ₹2150 crore to fund infrastructure projects in the state through the issue of masala bonds which were listed on the London and Singapore stock exchanges. In 2021, the ED told the Kerala high court that it is conducting an inquiry.