THIRUVANANTHAPURAM: Former finance minister Thomas Isaac will not appear before the Enforcement Directorate for questioning on Tuesday.The senior CPM leader received the ED notice on Monday, summoning him in connection with the alleged Foreign Exchange Management Act (FEMA) violations by Kerala Infrastructure Investment Fund Board (KIIFB).
Isaac, however, said he has three classes at EMS Academy and hence won’t appear on Tuesday. Further decisions will be taken after discussions in the party, he said. The ED probe is based on the CAG report that KIIFB raised fund from the international market without the consent of the Union government. In a Facebook post, Isaac alleged the move against KIIFB was politically motivated.
RBI has found no irregularity with KIIFB: Isaac
The notice could be part of some new political plan by the BJP, and the ED has stooped to the level of BJP’s political tool for sometime now, Isaac said.“Two years ago, ED did the maximum that it can do. The CAG, Income Tax department and ED together attempted to set a trap. Nothing happened. Moreover, the people have rejected such allegations,” the former finance minister pointed out. Isaac rejected the ED argument that FEMA rules were violated in KIIFB issuing masala bonds.
“The state government cannot issue masala bonds. However, KIIFB is a body corporate. As per the RBI circular, any corporate or body corporate is eligible to issue such bonds,” Isaac said.He said it was in January 2019 that an amendment was brought in to stop body corporates from issuing masala bonds, and since KIIFB had issued masala bonds by then, the amendment won’t be applicable to KIIFB.
Isaac said the RBI has not found any irregularity with KIIFB so far. “KIIFB was not the first such body to issue masala bonds. Even the NHAI has issued such bonds. How can KIIFB be targeted?” he asked.
IF EX-MINISTER EVADES QUIZZING, ED CAN ARREST HIM
Kochi: The ED can arrest Thomas Isaac if he decides not to respond to the summons issued for the interrogation. According to legal experts, ED considers Isaac a witness familiar with the facts of the case. If the witness deliberately evades interrogation, an arrest warrant can be issued against him. Usually, the receiver of the summons sends a reply to the investigation officer if he cannot appear for interrogation. Based on that, a fresh summons is issued. In Isaac’s case, he has said that he will not appear before the ED and that the agency can arrest him, if required.