The political landscape in Kerala witnessed a fresh escalation on December 1, 2025, as senior CPI(M) leader and former finance minister Thomas Isaac vehemently denounced a showcause notice issued by the Enforcement Directorate (ED). The notice, reportedly served to him, Kerala Chief Minister Pinarayi Vijayan, and the CM's chief principal secretary K M Abraham, pertains to the Kerala Infrastructure Investment Fund Board (KIIFB) masala bond case.
Allegations of Political Motivation
Thomas Isaac, who served as the state's finance minister when KIIFB launched its masala bonds, was quick to label the ED's action as "politically motivated." His strong rebuttal came within hours of media reports revealing the issuance of the notice. Isaac framed the move as a targeted attack by central agencies against the Left Democratic Front (LDF) government in Kerala, suggesting it was an attempt to tarnish the state's development initiatives and derail the political opposition.
The case revolves around KIIFB's decision to raise funds through masala bonds—rupee-denominated bonds issued overseas—to finance major infrastructure projects in the state. The ED's notice is believed to seek clarifications on the processes and approvals related to this financial instrument.
The Details of the Notice
According to reports, the Enforcement Directorate sent the showcause notice to the three high-profile individuals on December 1, 2025. The agency's action is linked to its ongoing probe into the financial mechanisms employed by KIIFB. While the precise legal grounds cited in the notice are not fully public, it typically requires the recipients to explain their positions and actions regarding the matter under investigation.
The inclusion of Chief Minister Pinarayi Vijayan and his top bureaucrat K M Abraham indicates the probe is looking at the highest levels of decision-making. Thomas Isaac, as the then-finance minister and a key architect of KIIFB's financial strategies, is central to the case.
Broader Political Repercussions
This development is set to intensify the ongoing political feud between the ruling CPI(M) in Kerala and the Bharatiya Janata Party (BJP)-led central government. The LDF has consistently accused the Centre of weaponizing investigative agencies like the ED to target opposition-ruled states. This notice will likely be presented as the latest evidence of that alleged campaign.
The controversy also puts the spotlight back on KIIFB, which has been a flagship institution for the Vijayan government, funding projects like highways, bridges, and colleges. The opposition has previously questioned the board's financial model, and the ED's notice will fuel further debate on its governance and transparency.
As of now, there has been no official statement from Chief Minister Pinarayi Vijayan or K M Abraham regarding the notice. The coming days are expected to see robust legal responses from the accused and potentially more political fireworks, as the case touches upon issues of federalism, financial autonomy of states, and the use of central agencies.
