Kochi, Dec. 19 -- The Kerala High Court on Friday granted temporary relief to the Enforcement Directorate (ED) in the case related to the issuance of masala bonds by the Kerala Infrastructure Investment Fund Board (KIIFB).
A division bench stayed a single-judge order that had earlier restrained the ED from taking further action on show-cause notices issued for alleged violations of the Foreign Exchange Management Act (FEMA).
With the interim order, the central agency has been allowed limited leeway to proceed in the matter until the court takes a final call.
The ED has alleged that funds raised through masala bonds were utilised for purposes such as land acquisition, which it claims falls outside the permitted framework under FEMA. KIIFB...