The Enforcement Directorate (ED) has issued notices to Kerala Chief Minister Pinarayi Vijayan and officials of the Kerala Infrastructure Investment Funds Board (KIIFB) in connection with alleged violations of the Foreign Exchange Management Act (FEMA), officials said.
The notices were issued 19 days ago, on Nov. 12, 2025, during court proceedings, officials said, adding that “the notice does not have to appear in person.”
Apart from Kerala CM (Chairman, KIIFB), KM Abraham (CEO, KIIFB), TM Thomas Issac (Vice-Chairman, KIIFB) and KIIFB were issued notices.
The case relates to alleged irregularities in KIIFB’s (ECB) external commercial borrowings through Masala bonds issued on the London and Singapore stock exchanges.
Officials said KIIFB has increased ₹2,672.80 crore through rupee denominated bonds for infrastructure financing.
However, it is claimed that “part of the funds raised – in the amount ₹466.91 crore — was used for purchase of land, a transaction allegedly prohibited under Reserve Bank of India’s Master Instruction No. 5/2015-16 and Circular No. 17 dated September 29, 2015.”
Officials also cited an RBI communication dated June 1, 2018, which reiterated the restrictions.
A formal complaint under FEMA was filed on June 27, 2025. After reviewing the matter, the adjudicating authority issued a notice.
The development represents a significant escalation in the ongoing investigation into KIIFB’s financial operations and practices in obtaining loans through international markets. Further details are awaited (ANI)
