Kerala not ruled by Congress leaders of north: Thomas Isaac

The minister said the ED was tyring to demoralise the officers of KIIFB. "The ED wants to elicit certain answers favouring its interests.
Kerala Finance minister TM Thomas Isaac. (Photo | B P Deepu, EPS)
Kerala Finance minister TM Thomas Isaac. (Photo | B P Deepu, EPS)

THIRUVANANTHAPURAM: Finance Minister Thomas Isaac has said that his government does not fear the Enforcement Directorate's (ED) probe against the Kerala Infrastructure Investment Fund Board (KIIFB). The ED cannot do anything against KIIFB, he said.Addressing mediapersons here on Wednesday, the minister said the BJP-led Centre was misusing ED for political gains. The minister's response came in the wake of its probe into the masala bond issuance by KIIFB. The agency had summoned the top executives of KIIFB for interrogation. 

The minister said the ED was tyring to demoralise the officers of KIIFB. "The ED wants to elicit certain answers favouring its interests. The state government will not allow the ED to threaten its officers. The state will not step back if the Centre plans a confrontation. The probe is part of the plot to scuttle Kerala's development," the minister said. 

"The ED can seek information from them. But if they are planning to threaten them, we remind them that Kerala is not ruled by Congress leaders of the north. This government can protect its officers against harassment and threats. Here also we have the police for law and order maintenance. If the Centre is planning for a confrontation with the state, the state will not step back," he said.Isaac refuted the charge KIIFB was misused for whitening black money. "Those who spread such lies do not have a basic understanding of the fund mobilisation method of KIIFB," he said. 

‘Not govt, but KIIFB  has availed of loan’

The minister said the CAG’s findings against the KIIFB’s foreign borrowings were absurd. “The union government is entitled to frame laws related to foreign loans. But that doesn’t mean that only the Central government is entitled to avail of such loans,” he said.  The FEMA allows any body corporate to avail of foreign loans with the sanction of the Reserve Bank of India (RBI). The KIIFB followed this guideline and secured sanction from the RBI. Also, a report was given to the RBI on the spending of the loan amount. 

“Not the Kerala government but the KIIFB has availed of the loan. The KIIFB Act defines the organisation as a body corporate. The KIIFB will not fall under the purview of Article 293 (1) of the Constitution and hence there is no question of violation of Constitutional provision, he said.

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