Kerala HC stays further proceedings on ED notice to CM Vijayan, others

The Kerala High Court on Thursday stayed for three months any proceedings pursuant to the show cause notice issued to Chief Minister Pinarayi Vijayan by the ED in connection with the KIIFB Masala Bonds issue.

Justice VG Arun also extended the same interim relief to former State Finance Minister Thomas Isaac and Vijayan’s Chief Principal Secretary and KIIFB CEO KM Abraham. The order came on the joint plea moved by Vijayan, Isaac and Abraham seeking quashing of the Enforcement Directorate (ED) show cause notices issued to them in November in connection with the use of the Masala Bond funds by the Kerala Infrastructure Investment Fund Board (KIIFB) for the acquisition of land for infrastructure projects.

The ED had in November, issued a Rs 467 crore FEMA contravention show cause notice to Vijayan, Isaac, and Abraham in the KIIFB Masala Bond case.

The notice pertains to the alleged contravention of FEMA provisions and the RBI master direction by KIIFB and its authorities, amounting to Rs 466.91 crore.