The Kerala High Court on Friday asked the Enforcement Directorate (ED) to inform the court of any of the specific allegations against former Finance Minister T.M. Thomas Isaac for which summons had been issued in connection with suspected violations of the Foreign Exchange Management Act in the floating of masala bonds by the Kerala Infrastructure Investment Fund Board (KIIFB).
When a petition filed by the former Minister and the KIIFB challenging the ED summons came up for hearing, Justice P.R. Ravi orally observed that the court wanted to convince itself whether the proceedings had been initiated by the ED on the basis of any specific allegations.
During the hearing, counsel for Dr. Isaac and the KIIFB submitted that the ED had been conducting an investigation without registering a case or initiating any proceedings or levelling any specific allegations against him.
The ED had earlier submitted that it was conducting only an inquiry before launching the investigation. However, the agency had now taken the stand that it was conducting an investigation. In fact, the ED had been conducting an investigation in the past three-and-a-half years. There was no prima face case that Dr. Isaac had committed any irregularities or wrongdoings.
Counsel for Dr. Isaac submitted that he had nothing to do with the funds raised through masala bonds being utilised by the KIIFB as he was acting only as chairman of the executive committee and vice-chairman of the general committee of the KIIFB.
It was settled that the ED could conduct an inquiry after disclosing the alleged wrongdoing to the persons from whom information had been sought. The summons were illegal and beyond the jurisdiction and the scope of inquiry contemplated under FEMA, counsel for Dr. Isaac argued.
The only intention behind the latest summons was to obstruct his election campaign as was the Left Democratic Front candidate in the Pathanamthitta Lok Sabha constituency.
The court adjourned hearing on the petitions to April 9.
Published - April 05, 2024 08:01 pm IST
