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Kerala News

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Kerala / The New Indian Express

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Masala bond notice triggers political debate days before local body polls

THIRUVANANTHAPURAM: With just days to go for the local body elections, the Enforcement Directorates notice to Chief Minister Pinarayi Vijayan has kicked off a political debate. Notices were also served on former finance minister and vice-chairperson of KIIFB Thomas Isaac and CEO K M Abraham alleging FEMA violation in the utilisation of funds. Opposition Leader V D Satheesan reiterated his partys stand that there was massive corruption and serious rule violations in the masala bond issue. Masala bonds were floated for a high interest rate of 9.723 pc, neglecting low interest loans available in the market. Rs 1045 crore was the interest for Rs 2150 crore mobilised. However, he raised suspicion over the real intention behind the notice. The present notice is to threaten the CPM and the CM in the wake of the LSG polls. In Kerala, the ED threatens CM by sending notices whereas in other states it hunts BJPs political enemies, he said. Terming the notice a joke, Congress state president Sunny Joseph alleged that it was a classic example of nexus between the central and state governments ahead of the elections. The notice is part of a deliberate attempt to divert public attention from the controversies surrounding Sabarimala and other issues haunting the LDF government. Finance Minister K N Balagopal said the notices were aimed at creating a controversy during election time. It also disproved the allegations of nexus between the BJP and the CPM. CPM state Secretary M V Govindan criticised the Congress double stand. The Congress would call it political vendetta when their leaders are summoned by the ED. But it takes a different stand in cases involving the CPM. We have always stood against the ED being misused against political parties, he said. Congress leader Ramesh Chennithala slammed the LDF government stating that the KIIFB masala bond was not a public issue but a private deal that benefitted the Canadian company CDPQ which holds crucial shares in SNC - Lavalin company. Thus, it percolates to Chief Minister Pinarayi Vijayan, who is one among the accused in Lavalin case.

2 Dec 2025 8:17 am