Kochi, Dec. 1 -- The Enforcement Directorate (ED) has issued a show-cause notice to Kerala Chief Minister Pinarayi Vijayan for Rs 466 crore under the Foreign Exchange Management Act (FEMA) in connection with the KIIFB Masala Bond investigation. Former State Finance Minister Thomas Isaac and ex-KIIFB Chief Executive K. M. Abraham have also been named in the notice.
The move relates to the 2019 Masala Bond issuance, through which the Kerala Infrastructure Investment Fund Board (KIIFB) raised over Rs 2,000 crore from international markets, becoming the first sub-sovereign entity in India to float such a bond abroad. The ED alleges that the funds raised were not used in compliance with FEMA regulations, resulting in potential violations.
Publ...