New Delhi, Dec. 1 -- The Enforcement Directorate (ED) has issued a show-cause notice under the Foreign Exchange Management Act (FEMA) to Kerala Chief Minister Pinarayi Vijayan and former Finance Minister Thomas Issac over alleged irregularities linked to the state's 2019 masala bond issue. Kerala Infrastructure Investment Fund Board (KIIFB) CEO K.M. Abraham has also been named in the notice, which pertains to transactions amounting to approximately Rs 468 crore.
The case centers on funds raised by the KIIFB, which became the first state entity to issue rupee-denominated masala bonds overseas in 2019, listing them on the London Stock Exchange. The bond issuance raised around Rs 2,150 crore, intended for major infrastructure projects under a...