ED Targets Kerala Chief Minister in Financial Probe
The Enforcement Directorate has escalated its investigation into the KIIFB masala bond case by issuing formal notices to Kerala Chief Minister Pinarayi Vijayan. This development marks a significant turn in the ongoing probe into the financial operations of the Kerala Infrastructure Investment Fund Board.
The federal agency sent notices on December 1, 2025, targeting not only the Chief Minister but also former finance minister and senior CPM leader Thomas Isaac. The third recipient of the notice was K M Abraham, who serves as the chief executive officer of KIIFB.
Political Figures Under Scanner
This action by the Enforcement Directorate represents one of the most direct confrontations between central investigative agencies and a sitting Chief Minister from the opposition ranks. The notices compel the recipients to provide explanations and documentation related to the masala bond issuance by KIIFB.
Thomas Isaac, who served as finance minister during the previous LDF government, has been a prominent defender of KIIFB's financial strategies. His inclusion in the probe indicates the ED is examining decisions taken during his tenure that involved overseas fundraising through masala bonds.
KIIFB's Financial Operations Under Scrutiny
KIIFB has been the primary vehicle for infrastructure development in Kerala, financing numerous projects through innovative funding mechanisms. The masala bonds, which are rupee-denominated instruments issued overseas, have been particularly controversial with opposition parties questioning their terms and conditions.
K M Abraham as KIIFB CEO has overseen the board's operations and would possess detailed knowledge of the technical and financial aspects of the bond issuance. His response to the ED notice will be crucial in determining the direction of the investigation.
The case has significant implications for Kerala's financial autonomy and the political landscape ahead of upcoming elections. Both the ruling LDF and opposition UDF have exchanged allegations regarding the transparency and legality of KIIFB's funding methods.
This development comes at a time when Kerala's infrastructure funding model has received both national and international attention for its innovative approach to resource mobilization for development projects.
