Kerala Chief Minister Pinarayi Vijayan
The Enforcement Directorate (ED) has issued a show-cause notice to Kerala Chief Minister Pinarayi Vijayan in connection with alleged violations linked to the ‘masala bond’ issued by the Kerala Infrastructure Investment Fund Board (KIIFB).
Former Finance Minister T.M. Thomas Isaac and KIIFB Chief Executive Officer K.M. Abraham also have received notices from the ED.
KIIFB had raised around ₹2,250 crore through masala bond in March 2019, and listing it on the International Securities Market of the London Stock Exchange on April 1, 2019. The ED notice is related to the alleged use of the funds raised through the bonds to purchase land and alleged violation of FEMA norms.
The ED notice to the Chief Minister was reportedly issued a few days ago.
Politically motivated: Isaac
Responding to the notice, Mr. Isaac described the notices as “politically motivated and a smokescreen.”
Speaking to reporters on Monday (December 1, 2025), he said the ED has regularly come up with the ‘masala bond’ issue ahead of elections in Kerala, starting with the 2020 local body elections. He said the Reserve Bank of India (RBI) is responsible for giving clearances for masala bond and all actions were taken as per RBI approval.
According to him, the ED has now filed its charge before the Special Director, ED, (Adjudication), New Delhi, and the Chief Minister, himself and Mr. Abraham have been asked to explain before the adjudicator.
Mr. Isaac said that land was never purchased using the funds, but acquired. “Moreover, when acquiring, RBI had also taken away the condition that land cannot be purchased,” he said, adding that legal advice will be sought to finalise a response to the notice.
Meanwhile, CPI(M) State secretary M.V. Govindan termed the ED notice to the Chief Minister “a political game.” ED notices have coincided with elections in Kerala, he said.
“ED has issued notices during the 2020 local body elections, the 202 Assembly elections an the 2024 Lok Sabha elections. It is a political game,” he said.
By issuing show-cause notices, the ED has thrown a challenge not to the Chief Minister or Mr. Isaac, but the people of Kerala. KIIFB has spearheaded development initiatives worth ₹1 lakh crore in the State, he said.
Published – December 01, 2025 10:21 am IST
