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Show cause notice issued to Kerala Chief Minister Pinarayi Vijayan

ED’s action in Rs 2,000 crore 'Masala Bond' case

(ED stands for Enforcement Directorate)

Thiruvananthapuram (Kerala) – The Enforcement Directorate (ED) has issued a 'show
cause' notice to Kerala Chief Minister Pinarayi Vijayan in the money laundering case
related to the 'Masala Bond' transaction of the Kerala Infrastructure Investment Fund
Board. The notice, which relates to a transaction worth Rs 468 crore, has also been issued to Kerala Infrastructure Investment Fund Board CEO K.M. Abraham and Vice Chairman and former Finance Minister T.M. Thomas Isaac.

1. This fund was meant for important infrastructure projects and as part of a larger plan to raise Rs 50,000 crore for the progress of the State.

2. The ED has said that Rs 466 crore were used for land acquisition. This is against the Foreign Exchange Management Act and the Reserve Bank of India rules.

3. The ED has said that these allegations relate to irregularities related to the transfer of funds related to the amount of bonds and foreign exchange.

4. The ED started investigating the 'Masala Bond' case in 2021, and summoned Isaac
for questioning in the year 2024. Notably, Isaac ignored two summons. The ED had objected to this.

Opposition criticizes

The opposition in the State has alleged that the Left Democratic Alliance Government has violated fiscal guidelines. Congress leader Ramesh Chennithala accused Chief Minister Vijayan and the Kerala Infrastructure Investment Fund Board chief of widespread financial irregularities. Congress MLA V.D. Sathisan also objected to the Kerala Infrastructure Investment Fund Board's borrowing practices.
What is the 'Masala Bond' case ? 'Masala Bond' is a loan raised outside India in Indian rupees. (A bond is a written receipt for a loan or a loan raised by means of securities.) Masala Bond has no relation to spices but has been given an Indian name. In this, foreign investors provide money; but the money has to be repaid in rupees. The Kerala Infrastructure Investment Fund Board in Kerala was accused of violating the loan limit and approval rules while issuing such bonds. This case is called the 'Masala Bond' case.

Editorial Perspective

An incident that shows that communists are always ahead in their criminal or corruption activities. Dissolving such a socially destructive Government and imposing President's rule in Kerala is in the interest of the country.

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