KIIFB CEO Rejects ED Claims, Confirms Masala Bond Funds Used Lawfully

Thiruvananthapuram: KIIFB CEO K M Abraham on Monday clarified the notice served by the Enforcement Directorate (ED) in the Masala Bond case, stating that the board has not violated any provision of FEMA or any other law. In a Facebook post, he said the ED's show cause notice is based on false figures, misrepresentation of facts, and a flawed understanding of applicable regulations.

'As CEO, I wish to state categorically that KIIFB has not violated any provision of FEMA or any other law. The deployment of Masala Bond proceeds has been lawful, proper, and in service of Kerala's infrastructure development,' Abraham said.

The ED issued notices to Chief Minister Pinarayi Vijayan, former finance minister T M Thomas Isaac, and Abraham himself regarding the deployment of funds from KIIFB's 2019 Masala Bond, specifically citing Rs 466 crore for land purchase. Abraham said the actual amount deployed for land acquisition was only Rs 66 crore, all for legitimate infrastructure purposes. He said every rupee has been accounted for, audited, and deployed in strict compliance with FEMA and RBI's External Commercial Borrowing guidelines.

Abraham emphasised that land acquisition for public infrastructure is legally valid, recognised by authorities including the CAG, and not prohibited under FEMA. He said KIIFB will file a comprehensive response addressing all points with documentary evidence and legal analysis.

He added that KIIFB stands ready for scrutiny, has nothing to hide, and will counter what he described as baseless claims through legal forums, continuing its mission to build a modern and prosperous Kerala.

KIIFB raised Rs 2,150 crore through its debut Masala Bond in 2019 to finance critical infrastructure projects, as part of a broader Rs 50,000 crore mobilisation plan.