KOCHI: KIIFB chief executive officer K M Abraham and joint fund manager Anie Jula Thomas on Friday approached the Kerala High Court challenging the summonses issued by Enforcement Directorate (ED). The ED is probing the alleged violations of Foreign Exchange Management Act (FEMA) in the issuance of ‘Masala Bonds’ by KIIFB.
Counsel for the petitioners, B G Harindranath, stated that there was no violation of any provisions of FEMA in the case. Further, the RBI had given specific authorisation to KIIFB in 2018 to issue Rupee Denominated Bonds for Rs 2,672.8 crore under the extant RDB framework.
The petition stated that the investigation initiated by the ED into the affairs of KIIFB is part of an organised smear campaign perpetuated by vested political interests to discredit the state government. ED does not have jurisdiction to inquire into the issuance of Masala Bonds by KIIFB as it was done after obtaining permission from RBI, which is the regulator under FEMA. Hence, the petitioners sought to quash the summonses.