Is the ED's notice to CM Vijayan and others politically motivated?
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Synopsis
Former Kerala Finance Minister Dr T.M. Thomas Isaac alleges that the Enforcement Directorate's recent notice is a politically driven move aimed at influencing local elections. He critiques the ED's actions as politically motivated and recalls similar instances in past elections, raising questions about the integrity of the investigation.
Key Takeaways
- Dr T.M. Thomas Isaac alleges politically motivated actions by the ED.
- The notice relates to the Masala Bond case.
- Isaac asserts that the ED serves the interests of the BJP and UDF.
- The ED has previously revived the investigation during election cycles.
- Isaac questions the legitimacy and transparency of the ED’s actions.
Thiruvananthapuram, Dec 1 (NationPress) Former Kerala Finance Minister Dr T.M. Thomas Isaac has asserted that the Enforcement Directorate’s recent notice concerning the Masala Bond case is a politically motivated maneuver aimed at swaying the forthcoming local body elections in the state.
Isaac received a notice from the ED alongside CM Pinarayi Vijayan and others.
The distinguished economics professor and four-time CPI(M) legislator served as the State Finance Minister from 2006 to 2011 and again from 2016 to 2021, during which the Masala Bonds were issued.
He faced a setback in 2021 when his party chose not to nominate him for the Assembly elections.
He labeled the ED’s actions as a “theatrical display” that recurs with each election cycle, accusing the agency of functioning as a campaign tool for the BJP.
Following the news on Monday regarding the ED’s adjudication notice related to the Kerala Infrastructure Investment Fund Board (KIIFB)’s Masala Bond issuance, Isaac remarked that the case has been revived repeatedly -- during the 2020 local elections, the 2021 Assembly elections, and the upcoming 2024 Lok Sabha elections, and now again ahead of local body polls.
“The ED is promoting the BJP and the Congress-led UDF under the guise of investigation,” he charged.
He recalled that the ED’s initial claim was that KIIFB lacked the necessary permission to issue Masala Bonds.
However, Isaac emphasized that all procedures were sanctioned by the RBI and carried out transparently.
Despite this, he was summoned not for KIIFB-related documents but for personal and family bank account information and records from companies he was associated with.
Questioning the purpose behind this, he approached the High Court, which subsequently narrowed down the scope of document requests.
Isaac stated that the ED continues its “pointless fishing expeditions”, driven by political directives from Delhi.
He claimed that the investigators presumed misappropriation due to the substantial financial transactions involved.
“They concluded their investigation without calling me, yet filed a complaint with the adjudicating authority,” he stated.
He clarified that the latest allegations claim that over Rs 2,600 crore raised through Masala Bonds was improperly used for land acquisition.
Calling this assertion unfounded, Isaac insisted: “No land was purchased. It was merely land acquisition, which is allowed. The RBI had already revised the previous ban on using funds for land purchases.”
He accused the ED of issuing notices to the Chief Minister as well to spark controversy.
Describing the notice as “prima facie unsustainable,” he stated that the agency was serving the political interests of the BJP and criticized the UDF for supporting such claims instead of dismissing them.
Isaac concluded that the ED’s maneuvers are “a political spectacle, not a genuine legal inquiry.”
In response, State CPI(M) secretary and MLA M.V. Govindan expressed surprise that the ED had not issued this notice earlier, as that is typically expected.
“Its timing aligns with the ED’s pattern of actions leading up to elections in the state. This serves as a notice to all of Kerala, given that around Rs one lakh crore worth of development has been undertaken using KIIFB funds throughout the state,” Govindan remarked.
Point of View
It is essential to consider the broader implications of such allegations on democratic processes and institutional integrity. Maintaining a neutral perspective, we recognize the importance of transparency and accountability in governance, while also respecting the legal frameworks that govern such investigations.
NationPress
01/12/2025
Frequently Asked Questions
What are the Masala Bonds?
Masala Bonds are rupee-denominated bonds issued in overseas markets, allowing Indian entities to raise funds while diversifying their investor base.
Who is Dr T.M. Thomas Isaac?
Dr T.M. Thomas Isaac is a former Finance Minister of Kerala and a prominent member of the CPI(M), known for his contributions to state economic policies.
What allegations did Isaac make against the ED?
Isaac accused the Enforcement Directorate of politically motivated actions aimed at influencing local elections and criticized their investigation as lacking integrity.
How has the ED responded to Isaac's claims?
The ED has not publicly responded to Isaac's specific allegations but maintains that their investigations are conducted as per legal protocols.
What is the significance of the KIIFB in this context?
The Kerala Infrastructure Investment Fund Board (KIIFB) plays a crucial role in funding infrastructure projects in Kerala, and its financial dealings have come under scrutiny.
