Former Kerala Finance Minister Faces Sixth Summons in Masala Bonds Case

In a recent development, the Enforcement Directorate (ED) issued the sixth summons to Dr. Thomas Issac, the former Finance Minister of Kerala, on Wednesday, March 27, concerning the investigation into the ‘masala bonds’ case. The summons requires Dr. Issac to make an appearance before the agency on Monday, April 1. This action comes in light of the Kerala Infrastructure Investment Fund Board’s (KIIFB) raising of Rs 2,150 crore through masala bonds in 2019, during Dr. Issac’s tenure as Finance Minister in the first Pinarayi Vijayan government (2016-21). The ED has identified Dr. Issac as a pivotal figure in the case, emphasizing the necessity of his cooperation in the investigation.

Dr. Issac, who is also the Lok Sabha candidate for the Communist Party of India (Marxist) in the Pathanamthitta constituency, has expressed resistance to the summons, citing a lack of clarity regarding the allegations against him. He stated, “The ED should not forget that this is Kerala and not north India. The ED is not going to cut my nose if I don’t appear.” Furthermore, Dr. Issac announced his intention to approach the Kerala High Court on the same day he is supposed to appear before the ED, seeking clarity on the summons.

Masala bonds, the center of this investigation, are rupee-denominated bonds issued to foreign investors, settled in US dollars, and are governed by the financial regulations of the issuing jurisdiction. The concept was introduced by the World Bank-backed International Finance Corporation in November 2014. These bonds are aimed at funding long-term infrastructure projects in India. As the case unfolds, the ED assures that the questioning process will be thoroughly documented and presented in court, promising that there will be no arrest during the investigation.

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