The Enforcement Directorate (ED) submitted before the Kerala High Court on Friday that it is the only competent authority to probe matters under PMLA 2002 and FEMA 1999 and that it began a probe on the Rupee-denominated bonds overseas (masala bonds) issued by KIIFB based on a complaint about the (alleged) contravention of FEMA.
This counter affidavit was in response to a writ filed by former Finance Minister Thomas Isaac, challenging the ED serving him summons to appear before the investigating officer. The ED in the counter affidavit, says the bonds must comply with guidelines under external commercial borrowings (ECB) and trade credit under FEMA.
It says the summons was issued to Mr. Isaac under FEMA, IT Act and the CPC and that ED officials concerned enjoyed the same powers as IT officers. The issuance of summons will not affect the rights of the person to whom it is issued, since it is only for preliminary probe and for the production of documents before the authority for further probe.
