ED case against Kerala funding agency

Enforcement Directorate has filed a case against KIIFBI, Kerala’s controversial infrastructure funding agency for violation of forex rules by accepting foreign funds without the approval of the central government.

The central agency has sent a notice to the chief executive officer and his deputy to appear before it for questioning. It has also sent a notice to Axis Bank, which is the agency’s main bank.

According to indications, Finance Minister Thomas Isaac may also be summoned for questioning. Isaac had used the state legislature to criticise CAG for finding fault with the state government’s funding agency for violation of constitutional provisions.

The development comes even as the state has entered a crucial election, which the ruling front and the opposition UDF are fighting bitterly. The LDF government has been whipping up passion over what it alleges as a central move to obstruct the state’s progress.