Back'ED violating model code of conduct': Kerala CM on summon to KIIFB officials
Sitharaman had recently accused the Pinarayi Vijayan-led government of giving all budget allocation to KIIFBA notice was sent to KM Abraham on Wednesday, asking him to appear for the investigating agency's Kochi office on 5 March
PremiumThe Enforcement Directorate's summon to KM Abraham, CEO of Kerala Infrastructure Investment Fund Board (KIIFB), is a violation of the model code of conduct, state Chief Minister Pinarayi Vijayan has claimed.
In a letter written to the Chief Election Commissioner, the CM said that the ED summoned KIIFB officials as per the political interests of Union Finance Minister Nirmala Sitharaman.
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"Hence, it is violating the model code of conduct," he wrote.
"The EC should take action against the investigating agency for violating the code of conduct," the CM added.
Nirmala Sitharaman's remark on 28 February during a BJP Yatra is evidence of the political use of investigative agencies, the letter read.
Sitharaman had recently accused the Pinarayi Vijayan-led government of giving all budget allocation to KIIFB.
"I don't know what budget making is this when all the money is given to one KIIFB. What is this organisation? We also make a budget in the union government.We don't give all money to one particular agency and say, 'we'll see'," she had said.
"The CAG has commented and criticised. Total questionable operation. If this is budget making, no wonder Kerala is going into a debt trap. And this is a questionable affair. Corruption," she added.
Following this, the ED has registered a case against KIIFB for external borrowings through Masala Bonds without the permission of the union government.
A notice was sent to KM Abraham on Wednesday, asking him to appear for the investigating agency's Kochi office on 5 March. Deputy Managing Director Vikramjit Singh was also asked to appear before ED on 4 March in a notice.
'No violation of Foreign Exchange Act'
Meanwhile, Kerala Finance Minister Thomas Isaac on Wednesday said that there was no violation of the Foreign Exchange Management Act (FEMA) in alleged case of external borrowings of Kerala Infrastructure Investment Fund Board (KIIFB) through Masala Bonds.
"There is absolutely no violation of FEMA as we have received No Objection Certificate (NOC) from Reserve Bank of India (RBI)," said Thomas Isaac while speaking to ANI.
The Finance Minister further said: "There is a guideline that authorizes any body corporate to seek their permission to borrow through Masala bonds. KIIFB is a corporate body."
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