Kerala's Masala Bond Controversy: Allegations, Politics, and Probes

The controversy over Kerala's masala bonds intensifies as BJP's Rajeev Chandrasekhar flags 'irregularities' and questions the state's choice of international fundraising. Opposition claims these are scare tactics ahead of elections. ED issues notices alleging FEMA violations, adding heat to the political climate.

Kerala BJP President Rajeev Chandrasekhar has intensified scrutiny on the state government's masala bonds, alleging multiple irregularities. He raised questions about the significant commission paid and Kerala's unusual decision to secure funds abroad at high interest rates instead of within India. The Enforcement Directorate (ED) has also pointed out potential violations of the Foreign Exchange Management Act (FEMA).

Amidst these allegations, Leader of Opposition VD Satheeshan accused the ED's notice against Chief Minister Pinarayi Vijayan and ex-Finance Minister Thomas Isaac of being a political maneuver. He labeled the timing during an election season as a tactic to intimidate the Communist Party of India (Marxist), asserting that previous similar notices yielded no substantial outcomes.

Senior Congress leader K Muraleedharan echoed these sentiments, criticizing the ED's actions as politically motivated attempts by the central government to sway the Left Democratic Front's political stance, ahead of the forthcoming assembly elections. The ED alleges that the funds raised through the masala bonds, meant for infrastructure development, were misused in violation of regulations.

(With inputs from agencies.)