THIRUVANANTHAPURAM: The state government will seek legal advice from senior advocate Fali S Nariman to counter the CAG’s observation that the borrowings by the Kerala Infrastructure Investment Fund Board (KIIFB) were unconstitutional. The government zeroed in on Nariman after extensive consultation with the advocate general and legal experts.
Sources in the government said that they would explore the possibility of a virtual appearance of Nariman in the High Court case. According to the government, the CAG did not seek the government’s opinion before arriving at the conclusion that the masala bond issued by KIIFB was unconstitutional. As per the version of Finance Minister Thomas Isaac, the CAG cannot order that the audit observations which were not consulted with the government should be tabled in the assembly and discussed. It is a breach of privilege of the House, he had said in a recent press conference.
Another strong point of the government is the RBI’s sanction for issuing masala bonds. The RBI had given sanction for raising `2,672.8 crore through the issuance. The sanction was as per Foreign Exchange Act.