The Enforcement Directorate has issued a Rs 466-crore FEMA show cause notice to Kerala CM Pinarayi Vijayan, former finance minister Thomas Issac, and the CM's chief principal secretary K M Abraham in the KIIFB Masala Bond case, officials said on Monday.
The notice, which does not require a personal appearance, was issued about 10-12 days ago by the federal probe agency under the provisions of the Foreign Exchange Management Act (FEMA).
A show cause notice is issued after the end of the investigation in a FEMA investigation, and the contravention quantified in it is akin to a penalty.
The probe is related to the end-use of Rs 2,000 crore raised by KIIFB through masala bonds, and its compliance with the FEMA norms.
KIIFB (Kerala Infrastructure Investment Fund Board) is the primary agency of the state government for financing large and critical infrastructure projects and had raised Rs 2,150 crore in 2019 through its debut masala bond issue as part of its plan to mobilise Rs 50,000 crore to fund large and critical infrastructure projects in the state.
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