KIIFB deposits in YES Bank come under ED lens
THIRUVANANTHAPURAM: The Enforcement Directorate has initiated an inquiry into a complaint against the Kerala Infrastructure Investment Fund Board (KIIFB) on a complaint alleging that the KIIFB had parked Rs 250 crore with the YES Bank, the Central Government informed the Rajya Sabha. In reply to a question by Javed Ali Khan MP, Union Minister of State for Finance Anurag Singh Thakur said that the ED has informed that “inquiries in the matter have been initiated and any disclosure in the matter at this stage can impact the progress.”
KIIFB CEO K M Abraham said he was unaware of the probe and the ED has not contacted them for any detail. He said it would be an inquiry on the complaint and not an investigation. Abraham exuded confidence that the agency will be satisfied with the inquiry and is unlikely to launch an investigation.
“KIIFB had given an explanation on the YES Bank deposit months before. It was the private bank with the best credit rating in the country when we made the deposits. They were given best ratings by Moody’s and ICRA,” he said at a press conference here on Wednesday.
KIIFB made deposits worth Rs 832.21 crore in seven instalments. YES Bank was selected since it quoted the maximum interest when rate quotations were invited as part of the investment management policy. The KIIFB stopped making fresh investment in the bank when its rating showed a drop in November 2018.However, the deposits were withdrawn upon their maturity at the agreed interest rate.