The Kerala High Court on Thursday put a three-month pause on Enforcement Directorate proceedings against Chief Minister Pinarayi Vijayan, staying action linked to a show cause notice issued in the Masala Bonds matter involving the state’s infrastructure funding agency.
Justice V G Arun extended the interim relief not only to Vijayan but also to former state Finance Minister Thomas Isaac and K M Abraham, the Chief Principal Secretary to the Chief Minister and CEO of the Kerala Infrastructure Investment Fund Board (KIIFB). The stay covers all proceedings arising from the show cause notices issued by the ED in November.
The case stems from the use of funds raised through Masala Bonds by KIIFB, specifically for acquiring land for infrastructure projects. Vijayan, Isaac, and Abraham had jointly approached the High Court seeking to quash the ED notices, arguing that the action against them could not continue when similar proceedings against KIIFB itself were already stayed.
Accepting this contention at the interim stage, the court observed that since further action pursuant to the show cause notice had been stayed in KIIFB’s plea, the three petitioners were also entitled to the same protection. On that basis, Justice Arun ordered that all related proceedings be kept in abeyance for three months.
The High Court has now listed the matter for further hearing in January, when it will be taken up alongside KIIFB’s petition, setting the stage for a consolidated consideration of the dispute surrounding the Masala Bonds issue.
