‘It’s a part of political tactics’: Thomas Isaac reacts to ED notice in KIIFB masala bond case

Thiruvananthapuram: Former Finance minister Dr Thomas Isaac has criticised the Enforcement Directorate (ED) for issuing notice to him and Kerala Chief Minister Pinarayi Vijayan in connection with the KIIFB Masala Bond case, calling it a political tactic ahead of the local body elections.

“It is unfortunate that UDF leaders are complicit in this,” Isaac said, noting that the notice coincided with the filing of a false case against Sonia Gandhi and Rahul Gandhi in the National Herald case. He added that the Congress should recognise what he termed “the malign intentions of BJP interventions and central agencies” and take a clear political stance.

Isaac explained that the show-cause notice alleges that funds raised through the Masala Bond should not have been used to acquire land. “Previously, the question was whether KIIFB had the authority to take the Masala Bond. Now, the ED's stance is that there is nothing wrong with it. On the contrary, the new notice says that the land was purchased illegally. In fact, the land was acquired, not purchased, two entirely different processes. The RBI itself had amended the condition regarding land acquisition at the time,” he said. Isaac said that the show cause notice was sent to the Chief Minister on this prima facie ground.

“The RBI gives permission for the masala bond. All the steps were taken with the approval of the RBI. Despite clarifying all this, the ED had previously sent notices asking to be present. At that time, the notice asked for the bank accounts of my family members, me, the details of the companies I was the director of, and their annual reports. When I filed a petition in the High Court asking why all this was happening, I was asked to appear again with a reduced number of documents. When I filed a petition again asking why I was being summoned, the court also clarified that the question was fair. However, the ED has not been able to answer it so far,” Isaac said.

"KIIFB handles transactions worth tens of thousands of crores. Sending such meaningless notices is futile, and they perhaps believe that investigating such large sums will halt progress," Isaac said.