The Enforcement Directorate (ED) on Thursday told the Kerala High Court that it is withdrawing the summons issued to officials of Kerala Infrastructure Investment Fund Board (KIIFB) and its former vice chairman Thomas Isaac in connection with its probe into alleged violations in financial dealings of KIIFB. In view of the agency withdrawing the summons, the court disposed of the petitions filed by Isaac and KIIFB. The ED had registered a case related to FEMA violations in connection with KIIFB raising Rs 2,150 crore masala bonds — rupee-denominated bonds issued outside India by Indian entities — listed on the London Stock Exchange. CPI(M) leader Isaac was the state finance minister during the previous LDF regime when the masala bonds were listed on the stock exchange. In October last year, the High court had restrained ED from issuing further summons to Isaac and executives of KIIFB. Last month, a single judge bench of Justice Devan Ramachandran lifted the interim stay and allowed issuance of fresh summons. Isaac and KIIFB challenged the single bench order and a division bench stayed it last week. On Thursday, the ED informed the bench of Justice Ramachandran about the agency’s decision to withdraw its summons. The court said as the summons stand withdrawn, there is no ground for the petitioners to challenge the proceedings. They would be at liberty to do so as and when it becomes warranted in future.
