Kollam/Kozhikode (Kerala), Dec 1 (PTI) Opposition Congress in Kerala on Monday mocked the ED's show cause notice to Chief Minister Pinarayi Vijayan and former finance minister T M Thomas Isaac in the KIIFB Masala Bond case and said that it was just to scare the CPI(M) ahead of local body elections and not meant for any real investigation.

While the Enforcement Directorate (ED) "hunts" political opponents in other states, in Kerala it merely sends notices to intimidate the ruling party and CM Vijayan, top Congress leaders alleged.

Apparently referring to an alleged notice sent to CM Vijayan's son by the ED in connection with the Life Mission Project case, they asked what happened to the earlier notice sent to the chief minister's residence by the central agency.

Speaking to reporters in Kollam, Leader of Opposition in the Assembly, V D Satheesan, alleged that there was serious corruption and procedural violations behind the issuing of masala bond.

The Opposition had already raised strong corruption allegations as there are many suspicious aspects behind it, he added.

"Sending this new notice right before the local body elections is only meant to intimidate the CPI(M) and the chief minister. The ED will not do anything beyond this. While the ED hunts political rivals elsewhere, here it sends notices only to scare," Satheesan alleged.

In Kerala, all central investigations have been "settled" this way, he claimed, and urged the ED to explain why no action was taken earlier.

Alleging that serious corruption, procedural violations and constitutional breaches are involved in the issuing of masala bond, the LoP said borrowing Rs 2,150 crore and repaying Rs 3,195 crore, including interest, within five years is not normal.

"It caused heavy losses to the state treasury. Public money collected through cess and tax was used to pay this exorbitant interest. This is not a case Isaac can laugh off. It is a serious one," Satheesan added.

Sharing similar views, KPCC chief Sunny Joseph said the ED's show cause notice to the CM is just a "joke".

Talking to reporters in Kozhikode, he said the present notice is merely to distract public attention from the issues the LDF government is facing over Sabarimala gold loss case.

"This is a coordinated deal between the Central and state governments to help the CM during election time. There is nothing new in it, and nothing will come of it," Joseph added.

He further mocked that the fate of this notice too would be like a mountain giving birth to a mouse.

Senior Congress leaders Ramesh Chennithala and K Muraleedharan also spoke on the same lines and said they did not expect any more development with regard to the ED notice.

Muraleedharan said the Kerala CM receives notices from the central agency at different intervals.

The objective behind the notice is to force him into taking a stance favourable to the BJP during the upcoming elections, he alleged.

Chennithala also said that he doesn't believe in the ED notices being issued during the time of elections.

The strong remarks from the Congress came hours after the media reported the show cause notice being issued by the ED to Vijayan, Issac and the CM's chief principal secretary K M Abraham in the KIIFB Masala Bond case.

The notice, which does not require a personal appearance, was issued about 10-12 days ago by the federal probe agency under the provisions of the Foreign Exchange Management Act (FEMA).

ED sources said the show cause notice is issued after the end of the investigation in a FEMA investigation, and the contravention quantified in it is akin to a penalty.

The probe is related to the end-use of Rs 2,000 crore raised by KIIFB through masala bonds, and its compliance with the FEMA norms.

KIIFB (Kerala Infrastructure Investment Fund Board) is the primary agency of the state government for financing large and critical infrastructure projects and had raised Rs 2,150 crore in 2019 through its debut masala bond issue as part of its plan to mobilise Rs 50,000 crore to fund large and critical infrastructure projects in the state. PTI LGK KH

Masala bond case: federal agency issued FEMA show-cause notices over end-use of funds and potential penalty. Enforcement Directorate issued a post-investigation FEMA show-cause notice to the Chief Minister, former finance minister and officials regarding KIIFB's masala bond issuance, quantifying alleged contraventions akin to a penalty and focusing on the end-use and FEMA compliance for about Rs 2,000-2,150 crore; the notice does not require personal appearance.