KIIFB CEO K M Abraham addressed allegations from the ED regarding the misuse of masala bond proceeds. He asserted KIIFB's compliance with FEMA and RBI guidelines, refuting claims of improper land purchase use. Abraham stated full transparency and a vow to counter the claims with evidence.

KIIFB CEO Denies FEMA Breaches in Masala Bond Case

Kerala Infrastructure Investment Fund Board Faces Enforcement Directorate Scrutiny

The Kerala Infrastructure Investment Fund Board (KIIFB) is under intense scrutiny amid the Enforcement Directorate's (ED) allegations of violating Foreign Exchange Management Act (FEMA) provisions.

Accusations and Denials

The ED alleges that KIIFB misused Rs 466 crore from a 2019 masala bond issuance for prohibited land purchases, sparking a heated debate about the legitimacy of the fund's activities.

CEO's Response

K M Abraham, Chief Executive Officer of KIIFB, refuted the allegations in a statement released on Facebook, asserting that the fund strictly adhered to FEMA provisions and the Reserve Bank of India's External Commercial Borrowing guidelines.

Every rupee was properly accounted for.
Audits were conducted regularly.
Funds were used for legitimate infrastructure development projects.

KIIFB's Defense

Abraham emphasized the distinction between prohibited commercial land purchases and permissible land acquisitions for public infrastructure, contending that the ED's figures are inflated and misrepresented.

KIIFB plans to respond robustly, providing comprehensive documentation and legal analysis to refute the charges and clear its name.

What's Next?

The situation is likely to escalate with both parties expected to engage in a high-stakes battle to prove their claims.

The outcome of this controversy will have significant implications for KIIFB's reputation and the Indian government's efforts to promote infrastructure development.