THE JHARKHAND STORY DESK
New Delhi, Dec 1: The Enforcement Directorate (ED) has issued show cause notices to Kerala Chief Minister Pinarayi Vijayan and senior officials of the Kerala Infrastructure Investment Fund Board (KIIFB) over alleged violations of the Foreign Exchange Management Act (FEMA).
The notices, sent on November 12, 2025, relate to irregularities in KIIFB’s external commercial borrowings (ECB) through Masala Bonds listed on the London and Singapore Stock Exchanges.
Officials said the KIIFB had raised Rs 2,672.80 crore via rupee-denominated bonds to fund infrastructure projects. However, a portion of these funds—approximately Rs 466.91 crore—is alleged to have been used to purchase land, a transaction prohibited under RBI guidelines, including Master Direction No. 5/2015-16, Circular No. 17 dated September 29, 2015, and reiterated in a June 1, 2018, RBI communication.
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Besides the Kerala CM, who chairs KIIFB, the notices were also served on KM Abraham (CEO), T M Thomas Isaac (Vice Chairman), and KIIFB itself. Authorities clarified that the noticees are not required to appear in person.
The formal FEMA complaint was filed on June 27, 2025, and after a review, the adjudicating authority issued the show cause notices. This marks a significant escalation in the investigation into KIIFB’s financial practices and the use of funds raised from international markets.
