Kochi: The Kerala High Court on Wednesday stayed further proceedings on an Enforcement Directorate (ED) notice issued to Chief Minister Pinarayi Vijayan in connection with the Kerala Infrastructure Investment Fund Board (KIIFB) masala bond issue. The court granted a three-month interim stay, providing temporary relief to the Chief Minister and the state government.
The High Court directed that no coercive action be taken during the stay period and posted the matter for further hearing in January. The ED notice was part of its probe into alleged violations of the Foreign Exchange Management Act (FEMA) related to KIIFB’s overseas borrowing through masala bonds.
The state government has consistently maintained that the masala bond issue was carried out with necessary approvals and in compliance with existing laws, describing the ED action as politically motivated. The High Court’s decision to stay the proceedings comes amid heightened political debate in Kerala over the role of central agencies in probing state-run financial institutions.
The interim order is seen as a significant development in the high-profile case, which has both legal and political implications, as the court will examine the validity and scope of the ED’s actions when the matter comes up again in January.
