SC stays CBI probe against Kerala CM's top advisor in a DA case. Who is KM Abraham?

The Supreme Court on 30 April stayed an order directing the Central Bureau of Investigation (CBI) to file an FIR and start a probe against Kerala Chief Minister Pinarayi Vijayan's chief principal secretary KM Abraham in a disproportionate assets (DA) case.

A bench of Justices Dipankar Datta and Manmohan issued notice to the CBI, Kerala government and the complainant on an appeal filed by Abraham, a retired IAS officer and the CM's chief principal secretary.

Senior advocate R Basant, appearing for Abraham, said that the FIR under the Prevention of Corruption Act cannot be registered without mandatory sanction under Section 17A of the law.

The Kerala High Court on 11 April ordered a CBI probe against Abraham on the plea filed by activist Jomon Puthenpurackal.

The high court observed a careful analysis of the preliminary inquiry report, other materials and Abraham's defence "prima facie indicated he possessed "movable and immovable properties disproportionate to his known sources of income".

The probe by the Vigilance and Anti-Corruption Bureau (VACB) in the matter, it said, wouldn't "instil confidence in the public" and the credibility of its enquiry was "doubtful".

The high court, while ordering the CBI probe, set aside a 2017 order of the enquiry commissioner-cum-special judge in Thiruvananthapuram, who rejected the petitioner's complaint against Abraham.

The high court said the special judge ought to have appreciated the petitioner's contentions with regard to the various properties, worth crores, acquired by Abraham that were excluded from consideration by the VACB enquiry officer.

Who is KM Abraham?

Abraham is a 1982-batch IAS officer of Kerala cadre, who has been the chief secretary of the state too. Abraham is also a former whole-time member of the market regulator Securities and Exchange Board of India (SEBI).

Since May 2021, Abraham has been attached to the Chief Minister’s Office (CMO). In 2024, the Vijayan government accorded Cabinet rank to Abraham, making him even more powerful than a serving chief secretary of the state.

Abraham shot to the limelight for the first time many years ago. As a whole-time director of SEBI from 2008-2011, Abraham, the then in charge of secondary markets, probed the Sahara India investor fraud scandal about raising funds from the stock market. Abraham directed the Sahara Group to refund the money mobilised from investors. His direction was later upheld by the Supreme Court of India.

Abraham holds an MTech degree from IIT-Kanpur and a PhD degree from the University of Michigan in the US. During his service as IAS officer, he was posted with the Kerala's finance department. During the Congress regime in Kerala (2011-2016), Abraham served as additional chief secretary for finance. Even after the Vijayan-led Left government came to power, Abraham continued at the helm of the finance department. He became the chief secretary in 2017.

In the news as CEO of KIIFB

Abraham has been in the news recently as CEO of Kerala Infrastructure Investment Fund Board or KIIFB, floated in 2016 to mobilise funds from the open market to invest in infrastructure.

In 2022, the ED registered a case against KIIFB alleging violations of the Foreign Exchange Management Act (FEMA) in connection with raising ₹ 2,150 crore masala bonds listed on the London Stock Market. The ED served a summons to Abraham, among others, in the case.

The petitioner in the now-stayed CBI case alleged Abraham, during service, acquired an apartment worth ₹3 crore in Mumbai, another apartment worth ₹1 crore at Thycaud in Thiruvananthapuram and constructed a three-storey shopping complex at Kadappakkada in Kollam district worth ₹8 crore.

Abraham has denied all the allegations.

(With PTI inputs)