HC refuses to stay probe into KIIFB; ED says it is clarifying issues raised by CAG

Kerala High Court | Photo: Mathrubhumi

Kochi: The Kerala HC has refused to grant interim stay on the actions of the Enforcement Directorate (ED) against Kerala Infrastructure Investment Fund Board (KIIFB).

While asking the probe agency to file an affidavit, Justice VG Arun refused to give an interim order in the matter.

Earlier, the court had given relaxations to the ED summons to former finance minister Dr TM Thomas Isaac. It also has set aside another plea for pronouncing the verdict. This one was filed by LDF MLAs challenging the probe of the central agency.

KIIFB argued that the issuance of masala bonds was approved by the RBI. A report is being submitted to the bank every month. The RBI has not flagged any violation of Foreign Exchange Management Act which is the probe matter of ED, it said.

It also argued that the probe was to diminish the trust of the Board in the market. It will affect the future loans, it said.

Meanwhile, ED said that the probe was based on the CAG report and not on any complaint. The CAG has expressed some concerns and we are verifying them. It must not be blocked, ED pleaded.

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