ED Notice Is Election Smokescreen; BJP’s Move Aims to Undermine Kerala, Says Thomas Isaac

Thiruvananthapuram: CPI(M) central committee member Dr. Thomas Isaac has alleged that the latest notice issued by the Enforcement Directorate (ED) regarding alleged FEMA violations in the KIIFB masala bond issue is an attempt to create a political smokescreen ahead of the upcoming local body elections. The ED has issued notices to Chief Minister Pinarayi Vijayan, his Principal Secretary, and former Finance Minister Thomas Isaac in connection with the matter.

Dr. Isaac criticised the ED, saying it has not yet specified the reason for summoning the officials. “The ED has not clarified why we are required to appear. It has no answer even to the questions raised by the court. The timing of the notice is telling — it arrives during election season. This has now become a ritual during every election cycle. They appeared during the Assembly elections, then before the Lok Sabha polls, and now again before the local body elections. This is nothing but a political game by the ED acting as BJP’s instrument. It is disappointing to see UDF leaders falling in line with this narrative,” he said.

He added that the ED had earlier argued that KIIFB lacked authority to issue masala bonds, but the court had made it clear that the bonds were legal and issued with due approval from the Reserve Bank of India. “Now the ED claims that masala bond funds cannot be used to purchase land. No land was purchased using masala bond funds — land was acquired. These are two different processes. RBI has permitted land acquisition,” he asserted.

Describing KIIFB as a key infrastructure financing institution handling large-scale financial operations, Dr. Isaac said the ED’s notice targeted a matter that could be dismissed on prima facie grounds. “They seem to assume that something might emerge from this, even when there is nothing there. The BJP’s intention is to dismantle KIIFB. It is time that the UDF recognises the malicious agenda behind these actions by the BJP and central agencies and takes a political stand. Kerala will reject these tactics with contempt. The upcoming local body election result should serve as a verdict against the BJP’s attempt to undermine the state,” he said.