According to reports, the Central government has informed the Parliament that the Enforcement Directorate (ED) registered a case against the Kerala Infrastructure Investment Fund Board (KIIFB). Reportedly, they even informed that the Central Bureau of Investigation (CBI) is not investigating against the KIIFB. The Finance Ministry was reportedly responding to a question raised by MPs including Adoor Prakash, Hibi Eden and NK Premachandran.
The ED inquiry is following a complaint based on the Foreign Exchange Act. According to reports, statements were taken from Axis Bank and KIIFB officials in connection with the case. The government even informed that they are examing the documents submitted by the ED officials.
Earlier, Axis Bank had approached the Reserve Bank of India (RBI) on behalf of KIIFB seeking permission for masala bond. Later, the RBI had given permission.
On Sunday, the Income Tax (IT) Department has initiated an investigation against KIIFB. The probe agency has issued a notice seeking details regarding KIIFB projects introduced in the last five years. The agency has asked KIIFB to furnish all details pertaining to the financial transactions made with the contractors who awarded the works funded by KIIFB in the past five years. Moreover, in a letter, the Income Tax Additional Commissioner has sought details of the income tax paid by KIIFB for each project funded by KIIFB for the last five years.