On Thursday, Kerala Chief Minister Pinarayi Vijayan accused the Enforcement Directorate of trying to threaten officials of the state’s Infrastructure Investment Fund Board.
He said that his government will take legal action against the central agency.
On Tuesday, the Enforcement Directorate summoned top officials of the Kerala Infrastructure Investment Fund Board in a case related to the alleged violation of the provisions of the Foreign Exchange Management Act.
A case has also been registered against KIIFB Chief Executive Officer KM Abraham and Deputy Managing Director Vikramjit Singh, they have refused to appear before the ED.
Chief Minister said KIIFB issued Masala Bonds after obtaining permission from RBI and is following all norms.
The Chief Minister said that the EC should take action against the investigating agency for violating the Model Code of Conduct.
Nirmala Sitharaman accused the Pinarayi Vijayan-led government of giving all the budget money to KIIFB.
While on Tuesday, Kerala Finance Minister Thomas Isaac said that there was no violation of the Foreign Exchange Management Act in an alleged case of external borrowings of KIIFB through Masala Bonds.
ED has registered a case against KIIFB for external borrowings through Masala Bonds without the permission of the union government.