The Kerala Infrastructure Investment Fund Board (KIIFB) has challenged the affidavit of the Directorate of Enforcement (ED), which noted that former Finance Minister Thomas Isaac was instrumental in making decisions on the utilisation of KIIFB funds of masala bond.
In his affidavit filed before the Kerala High Court on Tuesday, K.M. Abraham, the CEO of the Board, said the statement was false and incorrect. The statement that Dr. Isaac played a key role in the end-use of the proceeds of the masala bond was false, incorrect, and misleading, the board contended.
Any statement made to the effect that Dr. Isaac had a key role in the utilisation of the proceeds of the masala bond or any other funds would seriously impair the professional image of KIIFB that it had assiduously built over the years. It will also damage the ability of KIIFB to raise funds from the financial markets within India and outside, the board argued.
The borrowing plan of KIIFB is approved by its governing body. The specific utilisation of the proceeds and allocating it to meet the expenditure on various projects approved by the governing body or executive committee does not then require any further decision at the level of the governing body or the executive committee, the board informed the court.
The executive committee approves projects with an outlay of ₹100 crore or less and projects worth over ₹100 crore are approved by the general body of KIIFB. Once the projects are approved, the execution of the decisions of the governing body/executive committee is delegated to the Chief Executive Officer, who is also the Fund Manager for KIIFB, it stated.
The board CEO also submitted that the statement of the ED has cast an aspersion on its professionalism and integrity.
Incidentally, Dr. Isaac had moved the Kerala High Court against the summons issued by the ED in connection with the probe into the masala bond.
