The Kerala High Court on Friday permitted the Enforcement Directorate (ED) to issue fresh summons to former Finance Minister T.M. Thomas Isaac as part of the agency’s probe into the issue of Masala bonds by Kerala Infrastructure Investment Fund Board (KIIFB).
In an order dated November 24, Justice Devan Ramachandran clarified that the pendency of the writ petitions will not stand in the way of the ED issuing fresh summons to any person, including the petitioners, and to continue investigation. However, it will be subject to further orders from this court, it said.
Dr. Isaac and K.M. Abraham, Chief Executive officer, of KIIFB had filed petitions challenging the summons issued to them in connection with the issue of masala bonds. The ED in the counter affidavit, said that the bonds must comply with guidelines under external commercial borrowings (ECB) and trade credit under Foreign Exchange Management Act (FEMA).
The counsel for Mr. Isaac stated that the investigation by the agency is causing serious prejudice to his client and he sought the intervention of the court. A. R.L. Sundaresan, the Additional Solicitor General of India, submitted that the agency is willing to issue fresh summons to the petitioners and other persons, who are within the scope of the investigation.
