Enforcement Directorate registers case against KIIFB for external borrowings through Masala Bonds without govt nod

Kochi (Kerala) [India], March 3 : Enforcement Directorate has registered a case against Kerala Infrastructure Investment Fund Board (KIIFB) for external borrowings through Masala Bonds without the permission of the union government.
According to sources, ED sent notices to KIIFB CEO KM Abraham and Deputy CEO asking to appear before it in connection with its probe next week. However, the exact date has not been mentioned in the notices.
Notices have also been sent to the head of Axis Bank, which is the KIIFB's banking partner.
KIIFB was constituted by the state government as a corporate body.
In November 2020, the ED had initiated an investigation into the Masala bonds of the KIIFB, as per the sources.
Recently, Union Finance Minister Nirmala Sitharaman accused the Pinarayi Vijayan-led government of giving all the budget money to KIIFB.