Former Kerala finance minister Thomas Isaac summoned by Enforcement Directorate in KIIFB masala bonds case

File Photo/PTI

The Enforcement Directorate Sunday issued summons against senior Kerala Communist Party of India (Marxist) leader Thomas Isaac in KIIFB masala bonds case, asking him to depose at the agency office in Kochi on January 12.

The summons has been issued to the 71-year-old politician for questioning in a FEMA case linked to probe into the alleged violations in the financial dealings of KIIFB during his tenure as the finance minister in the previous LDF government, newswire PTI reported quoting official sources.

The central agency in December had informed the Kerala High Court that it has withdrawn the summons issued to Isaac in KIIFB masala bonds case, the report said.

The submissions were made during hearing of a plea by Isaac and a KIIFB official alleging that only personal information was sought through the summons by ED and seeking quashing of the same. In view of the agency withdrawing the summons, the HC disposed of the petitions but at the same time, the court also said the ED was free to continue with its investigation in KIIFB masala bonds case.

ED sources said the fresh summons to Isaac has been issued in light of the HC allowing the agency to go ahead with the investigation, under the provisions of the Foreign Exchange Management Act (FEMA), into the end use of Rs 2,000 crore raised by KIIFB through masala bonds and its compliance with the FEMA norms.

Kerala Infrastructure Investment Fund Board (KIIFB) is the primary agency of the state government for financing large and critical infrastructure projects and had raised Rs 2,150 crore in 2019 through its debut masala bond issue as part of its plan to mobilise Rs 50,000 crore to fund large and critical infrastructure projects in the southern state.

The ED suspects contravention of the FEMA here and hence initiated a probe.

Meanwhile, expressing concern that TMC leader Shahjahan Sheikh, the prime accused in the case of assault on Enforcement Directorate officials in West Bengal, may have "crossed the border", the state's Governor C V Ananda Bose has instructed authorities to arrest him immediately and investigate his alleged connections with terrorists.

His remarks that Sheikh has links with terrorists drew sharp criticism from the ruling TMC on Sunday.

The statement issued by Raj Bhavan late Saturday night highlighted that the governor, upon receiving a complaint in the Peace Room, instructed the police chief to promptly arrest the culprit.

"On receipt of a complaint in the Peace Room of Raj Bhavan that Shahjahan Sheikh is supported by some political leaders with the connivance of some police officers, Hon'ble Governor instructed the Police chief to arrest the culprit forthwith and report compliance," the statement said.

The governor emphasised on the need to ascertain Sheikh's whereabouts and take appropriate action.

The complaint alleging that Sheikh may have "crossed the border" and "liaison with the terrorists" may be "enquired into immediately", the statement added.

Responding to the governor's comment, TMC spokesperson Kunal Ghosh said, "We don't know what is the basis of his remarks. According to the Constitution, the governor works in consultation with the state government. So how can he make such remarks without any concrete report or evidence? He is not here to run a parallel government."

Amid a political uproar over the assault on an Enforcement Directorate (ED) team in West Bengal, the family of the TMC leader and the central agency filed police complaints against each other on Saturday. The complaints were related to a raid during which the ED officials were attacked and injured by a mob.

The police also lodged a suo motu case against the ED officers, who were conducting the raid in connection with the alleged ration distribution scam. The charges included molestation, forcible entrance and theft.

The ED issued a lookout notice for Shahjahan due to concerns that he might flee the country following the incident in which three ED officers were injured and several vehicles were damaged by a mob at Sandeshkhali in North 24 Parganas district, close to the Bangladesh border, on Friday. (With inputs from PTI)