"Utterly ridiculous:" CM Pinarayi Vijayan on ED show cause notice to him in KIIFB case

Ernakulam (Kerala) [India], December 6 : Kerala Chief Minister Pinarayi Vijayan, reacting to the show-cause notice issued by the Enforcement Directorate over alleged FEMA violations in the KIIFB case on Friday, dismissed it as "utterly ridiculous".
The Kerala CM stated that such occurrences are expected when elections are around the corner. He emphasised that every project was executed in accordance with the Reserve Bank of India's guidelines under the KIIFB.
"When elections approach, certain things are bound to happen. They must be planning many such moves, and this may be one of them. They know what more is coming; we do not. But this particular action has turned out to be utterly ridiculous. Calling it a notice against KIIFB is completely laughable. What is KIIFB? Everyone in Kerala knows the background. it was created for infrastructure development. In 2016 itself, when KIIFB was formed, the Government clearly stated that the objective was to create Rs 50,000 crore worth of infrastructure development within five years. We looked at it as an alternative financial resource...," said Pinarayi Vijayan.
He further stated that KIIFB has not deviated from following the standards prescribed by the Reserve Bank of India.
"The allegation is being raised against an institution that has worked for the infrastructure development of our State. We can proudly say, with both hands raised, that we did this. KIIFB was set up to carry out development and it has done exactly that...Every single project was implemented strictly in accordance with Reserve Bank of India guidelines. KIIFB has not deviated even slightly from the standards prescribed by the Reserve Bank of India," added Vijayan.
Earlier, Bharatiya Janata Party (BJP) Kerala Chief Rajeev Chandrasekhar slammed Chief Minister Pinarayi Vijayan over alleged violations of the FEMA, in connection with the ongoing case of the KIIFB, suggesting that the party is using the "hard-earned taxes" of Malayalees as the Communist Party of India (Marxist)'s party fund.
Chandrasekhar emphasised that, similar to the alleged gold theft at Sabarimala, this matter should be thoroughly investigated.
"Kerala borrowed Rs 2,100 crore abroad at 9.5% interest when cheaper options were available in India. Let's be clear - this is a liability that hangs over the heads of every Malayalee, who deserve answers. And then quietly paid Rs 21 crore as "commission." Every other state raises bonds within India - no commission, no foreign middlemen, no secrecy," the BJP leader wrote on X.
Questioning the CPM-led government, Chandrasekhar asked, "So why did Pinarayi go to London to raise money? Who got the Rs 21 crore commission? Why raise it abroad at 9.5%? Why avoid Indian markets where interest is lower? Who bears forex risk, and was FEMA approvals sought as is required under law?"
These questions, he claimed, would have been answered by an honest government, "But CPM and its INDI partner Congress don't believe in honesty or accountability. These are Malayalees' hard-earned taxes - not CPM's party fund. So they can't escape accountability," he wrote on X.
Earlier, the Enforcement Directorate (ED) issued show cause notices to Kerala Chief Minister Pinarayi Vijayan and officials of the Kerala Infrastructure Investment Fund Board (KIIFB) in connection with alleged violations under the Foreign Exchange Management Act (FEMA), officials said.
The notices were issued 19 days back on November 12, 2025, during adjudication proceedings, said the officials, adding "the noticees are not required to appear personally."Besides the Kerala CM (Chairman, KIIFB), the notices were issued to KM Abraham (CEO, KIIFB), T M Thomas Issac (Vice Chairman, KIIFB), and KIIFB.
This case concerned alleged irregularities in KIIFB's external commercial borrowings (ECB) through Masala Bonds issued on the London and Singapore Stock Exchanges.
Officials said the KIIFB had raised Rs 2,672.80 crore via rupee-denominated bonds for infrastructure funding. However, it is alleged that "a portion of the raised funds -- amounting to Rs 466.91 crore -- was used for purchasing land, a transaction reportedly prohibited under Reserve Bank of India's Master Direction No. 5/2015-16 and Circular No. 17 dated September 29, 2015."