Ernakulam: Today, the High Court is set to reconsider the pleas filed by Kerala Infrastructure Investment Fund Board (KIIFB) and former Kerala Finance Minister Thomas Isaac regarding the Enforcement Directorate (ED) summons in the masala bond case. Isaac has reiterated to the court that he has no further statements to make in the ongoing case.
Following the court’s interim directive, a Deputy General Manager (DGM) from KIIFB’s finance department has appeared before the ED. The ED is expected to provide updates to the court regarding this development today. Despite Isaac’s insistence that KIIFB possesses all relevant documentation pertaining to the masala bond deals, the ED remains firm in its demand for Isaac to undergo questioning.
Last month, the High Court dismissed Isaac’s request for an extension of the ED summons in the masala bond case, emphasizing the importance of cooperation with the investigation. The court firmly stated that it would not issue any interim orders. Nevertheless, Thomas Isaac remains resolute in his decision not to cooperate with the ED. Despite repeated attempts to seek relief from the High Court against the ED, Isaac has encountered no favorable outcomes thus far.
In 2022, both KIIFB and Isaac had moved petitions challenging the summons by the Enforcement Directorate (ED) in relation to its probe into the alleged violations of the Foreign Exchange Management Act (FEMA) in the issuance of ‘masala bonds’.
Masala bonds are rupee-denominated bonds issued in foreign markets, allowing Indian entities to raise funds from international investors. These bonds are an instrument for Indian companies to tap into global capital markets without exposing themselves to the risk of currency fluctuations since the issuance is in Indian Rupees.
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