THIRUVANANTHAPURAM: The Enforcement Directorate (ED) has reportedly sought details from the Reserve Bank of India on the sanction given to the masala bond issuance by the Kerala Infrastructure Investment Fund Board.
Earlier, Kerala Finance Minister Thomas Isaac had stated that the masala bond issuance had RBI's clearance.
Responding to the development, Isaac said that the ED was on a deliberate attempt to create administrative stagnation in the state. He said the CAG, which criticised the masala bond issuance and the ED were colluding against the state. The minister wondered how the ED got access to the CAG report which was yet to be tabled in the Assembly.
The minister however did a somersault when he claimed that he had not leaked out the CAG's criticism against the RBI. He said he had only given a broad picture on the CAG's observation in the latter's report on state finances for 2018-19.
The current controversy started with the minister, in a rare move, revealing the contents of the report which his office received. The report was to be submitted to the Governor.
Speaker P Sreeramakrishnan had sought an explanation from the minister after the opposition issued a breach of privilege notice against the minister for revealing the report's contents.
A press statement issued by the minister on November 19 had clearly stated that the CAG had observed that the RBI's sanction to the masala bond was questionable. "This mention in fact acknowledges the RBI's approval for issuing masala bonds. We are grateful to the CAG for this," he said in the statement.