Twenty20’s entry into NDA was not to evade ED case, says Sabu Jacob

Reports that the Twenty20 joined the National Democratic Alliance (NDA) under duress to avoid the Directorate of Enforcement’s (ED) case against Kitex Garments Limited is fake, Sabu M. Jacob, president of Twenty20, has said.

Addressing a press conference here on Tuesday, Mr. Jacob, who is also the managing director of Kitex Garments, said that the company would serve legal notice for criminal and civil damages on the news channel which broadcast the alleged fake news reportedly at the behest of the CPI(M). Besides, a complaint would be filed with the Union Home Ministry against corrupt officials who leaked information from Central agencies to create fake news.

He said that the ED had issued notice to the company in May last year seeking relevant documents for the last few years since the COVID-19 pandemic as part of the usual procedure to verify whether the entire value of its foreign exports had been realised in India.

“We duly produced the documents and the agency was satisfied, and hence the matter stands closed now. It is standard procedure for agencies such as GST, Income Tax, Foreign Trade Department, Customs, and the ED to issue notices seeking clarification based on submitted documents. Legally, such notices addressed to the managing director are replied to by the departmental officers concerned, often without the managing director even being aware of them,” Mr. Jacob said.

He said that similar notices had been sent to nearly 1,000 exporters across the country, including multiple clients of the same commercial branch of the nationalised bank in which his company maintains the account. This was the latest example of attempts to sabotage Kitex driven by political hostility.

The value of exports is supposed to be realised within 180 days of the shipment failing which an extension should be applied, which the we did during the pandemic since everything remain closed, Mr. Jacob said.

DCC seeks apology

District Congress Committee (DCC) President Muhammad Shiyas said that having admitted to receiving a ED notice related to Foreign Exchange Management Act violations, Mr. Jacob should apologise to the people if he has any integrity left since it has now become clear his party joined the NDA camp only to escape the ED case.

He urged those with self-respect to leave that party. The BJP, which uses Central agencies including the ED, to topple governments and seize power in various States, was attempting the same strategy in Kerala, he said.

Mr. Shiyas alleged that Mr. Jacob had surrendered his party to the BJP in order to avoid imprisonment.