The Directorate of Enforcement (ED) on Tuesday informed the Kerala High Court that its investigation into the alleged violations of the Foreign Exchange Management Act (FEMA) in the floating of masala bonds by the Kerala Infrastructure Investment Fund Board (KIIFB) is delayed because of the non-cooperation of former Finance Minister T.M. Thomas Isaac.
The submission was made before the court when petitions filed by Dr. Isaac and KIIFB challenging the summons issued by the ED came up for hearing.
The ED, in an affidavit, further submitted that Dr. Isaac was giving scant regard to the law of the land and had gone on to challenge the ED proceedings by keeping away from the investigation. He neither appeared before the ED nor produced any records showing that his hands are clean. His conduct is unbecoming of a law-abiding citizen and the ED would be forced to resort to measures under the PMLA to enforce the summon.
The ED added that it was mentioned in the certified copies of the minutes of the executive committee and general body of KIIFB that Dr. Isaac was the chairman of the executive committee and vice-chairman of the general body. He was instrumental in taking decisions on utilisation of KIIFB funds of malsala bonds. The ED had made substantial progress in the probe. However, it was noticed that there had been inconsistencies in the end use of funds. It was, therefore, imperative to record the statements of Dr. Isaac and persons involved in the decision-making process for examining the legality and correctness of the utilisation of funds toward the projects undertaken in terms of the the provisions of FEMA.
It was suspected that Dr. Isaac was aware of the inconsistencies and, thus, his knowledge in the matter was to be examined under oath. In fact, the ED was contemplating to summon certain other persons involved in the decision-making process. The investigation could be completed only after obtaining necessary statements from Dr. Isaac.
The court posted the petitions to May 22 for further hearing.
