<h1>Infrastructure board challenges ED FEMA action over Masala Bond funds, says land acquisition not speculative real estate activity</h1> A state infrastructure funding board has petitioned the Kerala High Court to quash an Enforcement Directorate complaint and FEMA show cause notice over alleged misuse of Masala Bond funds for land acquisition. The ED argues the writ is not maintainable and that the board must approach the FEMA adjudicatory forum. The board contends that using external commercial borrowings for land acquisition for public infrastructure is distinct from prohibited 'real estate activities,' involves exercise of eminent domain, and is not speculative. It alleges the proceedings threaten its credit rating, investor confidence, and capacity to finance and complete large infrastructure and welfare projects, potentially triggering a significant financial crisis for the state.