ED initiates probe into masala bonds of KIIFB, seeks details from RBI

ED initiated a probe into masala bonds of KIIFB on Sunday. Meanwhile, a controversy erupted in the state after Finance Minister Thomas Isaac accused the central government of using central agencies and the Comptroller and Auditor General (CAG) office to sabotage developmental activities in the state.

Thiruvananthapuram (Kerala): The Enforcement Directorate (ED) has initiated an investigation into the masala bonds of the Kerala Infrastructure Investment Fund Board (KIIFB), sources said on Sunday.

According to sources in the ED, the economic offences watchdog has forwarded a letter to the Reserve Bank of India seeking details of the deal.

The action of the ED comes after a Comptroller and Auditor General of India (CAG) report claimed that KIIFB has caused a liability of Rs 3,100 crore to the government.

Meanwhile, a controversy erupted in the state after Finance Minister Thomas Isaac accused the central government of using central agencies and the Comptroller and Auditor General (CAG) office to sabotage developmental activities in the state.

Issac had alleged that the CAG report on state finances was an attempt to state that KIIFB loans are off-budget and anti-constitutional.

Earlier today, the United Democratic Front (UDF) had accused Isaac of deliberately trying to create a controversy over the CAG draft report on KIIFB to divert public attention from the crisis faced by the state government over gold smuggling and drug trafficking cases.

(ANI)