Nothing could have happened at KIIFB without approval of Thomas Isaac: ED to Kerala High Court

The Enforcement Directorate (ED) on Wednesday told the Kerala High Court that everything that happened at the Kerala Infrastructure Investment Board (KIIFB), especially with regard to the utilisation of funds raised through masala bonds, would have had the approval of Communist Party of India (Marxist) leader and the then State Finance Minister Dr. Thomas Isaac. .Masala bonds are rupee-denominated bonds issued outside India by Indian entities. The ED is probing alleged irregularities and contraventions of the Foreign Exchange Management Act of 1999 (FEMA) in KIIFB's issuance and utilisation of masala bonds. .Justice TR Ravi today questioned the relevance of getting oral evidence on the actions of a corporation like KIIFB which can only speak through its documents.To this, Additional Solicitor General of India (ASG) ARL Sundaresan, who was representing the ED, submitted that persons who were responsible for decision-making at KIIFB including Isaac who was the ex-officio vice chairperson of KIIFB at the time, are liable for KIIFB's actions."We can get information only from persons who were in the decision making process. We specifically say in our counter that being the vice chairman of the corporation, he was the chairman of the finance committee, and according to us, he is one who is aware of all the details with regard to the funds which were received and utilised. Without his approval and consent, things could not have happened and, therefore, he is a prime witness, a prime person from whom we would like to collect information", Sundaresan said. The ASG also contended that Isaac and KIIFB were attempting to halt he investigation and that the same amounts to misuse of the powers of the Court for judicial review under Article 226 of the Constitution of India."The investigator should be allowed to carry out the investigation and file a negative report or a positive chargesheet. It cannot be interdicted by saying there is nothing against us, so don't summon us. In which event, we are being halted from proceeding further which is not the object of judicial review under Article 226. A person who is summoned is not a person who is aggrieved to invoke the jurisdiction of this court under Article 226", the ASG stated..KIIFB officials and Isaac first filed petitions before the High Court in 2022 challenging the ED summons issued to them in connection with the central agency's probe.However, in December 2023, the ED informed the High Court that it had decided to withdraw the summons.At the time, the Court had clarified that the ED was free to continue its probe in the case.However, the ED issued fresh summons to Isaac and KIIFB officials in January this year following which Isaac and KIIFB filed this fresh round of petitions challenging the same.The primary ground raised by both Isaac and the KIIFB officials is that the summons issued to them contain no mention of what transactions are being investigated..The matter will be heard next on Friday, July 19th. .Additional Solicitor General of India ARL Sundaresan and Central Government Counsel Jaishankar V Nair appeared for the ED.Isaac was represented by Senior Advocate Jaideep Gupta and advocates N Raghuraj, Nandagopal S Kurup, Sayuja, Vivek Menon and Rance R.KIIFB was represented by Senior Advocate Arvind Datar and Kerala Advocate General Gopalakrishna Kurup K.