The court also restrained the ED from issuing summons to KIIFB Chief Executive officer KM Abraham and Joint Fund Manager Ani Jula Thomas for two months in a case related to the issue of ‘masala bonds’ by the Kerala Infrastructure Investment Fund Board (KIIFB).
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In a relief to Thomas Issact, the Kerala High Court, on Monday, ordered that no further summons be issued by the Enforcement Directorate (ED) to former state finance minister for two months in a case related to the issue of ‘masala bonds’ by the Kerala Infrastructure Investment Fund Board (KIIFB).
The court also restrained the ED from issuing summons to KIIFB Chief Executive officer KM Abraham and Joint Fund Manager Ani Jula Thomas for two months in the case.
A single bench of Justice VG Arun passed the order to this effect on two pleas – one moved by the KIIFB and the other by former Kerala finance minister, Thomas Isaac, challenging the summons issued by the ED in a probe into the KIIFB’s financial transactions
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The court pleaded with chief general manager, Reserve Bank of India, Mumbai as an additional respondent in the case and adjourned the hearing of the case on 15 November 2022.
The court observed that “although the inquiry by the Enforcement Directorate is not liable to be interdicted, there is no justification in the petitioners being repeatedly summoned by the officers of the ED.”
“Although the enquiry by the ED is not liable to be interdicted, there is no justification for petitioners to be repeatedly summoned by the officers of the ED,” the Court said.
The plea moved by the KIIFB challenged the repeated issuance of summons by the ED to KIIFB officers, including CEO KM Abraham, in connection with alleged violations of the Foreign Exchange Management Act (FEMA) when it issued ‘Masala Bonds’, i.e, rupee denominated bonds issued outside India by Indian entities.
The petition moved by Isaac, challenged the summons issued by the ED seeking his personal documents as well as those of his family members in connection with the same probe.
He contended that the summons was illegal and beyond the jurisdiction and the scope of inquiry contemplated under the FEMA since admittedly, there was no violation of any provisions of the Act.
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