Don’t try to threaten, Thomas Isaac to ED

Pathanamthitta: Taking a firm stance regarding the Enforcement Directorate (ED) in the masala bond case, former Finance Minister and LDF candidate in Pathanamthitta, Thomas Isaac, stated that he wouldn't budge an inch. His response came in the wake of the High Court seeking to know from the ED as to why Isaac has been summoned for questioning.

“Anyway, let’s see on Tuesday. Let them come with evidence. Case should be taken in case of any breach of law,” he said while speaking to media. He also called the ED a “BJP political agency” and “money heist machine”.

HC directs ED to provide convincing evidence 

The High Court has instructed the Enforcement Directorate to provide convincing evidence if there has been any diversion of funds raised by the Kerala Infrastructure Investment Fund Board (KIIFB) through the issuance of masala bonds abroad. Justice T R Ravi clarified that the court is not mandating the ED to disclose all investigation details but is merely seeking clarification due to the agency's allegations.

The case is posted again for April 9. The ED had alleged violation of FEMA in the issuance of masala bond by the KIIFB.

‘No meaning in questioning KIIFB, Isaac if fund diversion is not proved’

Considering the petitions filed by KIIFB and Thomas Isaac questioning the ED summons, the High Court orally observed that if the ED cannot convince the court of the diversion of funds, then there is no meaning in questioning them. The court also sought to know if statements are required on matters submitted with required documents.

Supreme Court advocate Jaideep Gupta, appearing for Thomas Isaac, said Isaac had connection with the KIIFB in his capacity as Finance Minister only and added that he had no links with the board since May, 2021. He is being summoned by the ED for things before that period, Gupta added. 

The probe has been on for the past 36 months. However, the diversion of funds cannot be proved yet. The documents pertaining to the fund utillisation were verified by the RBI and the CAG. Apart from Kerala, 19 other States and public sectors had issued masala bonds. However, the probe has been initiated only against Kerala, informed Supreme Court lawyer Arvind Dattar appearing for the KIIFB.