KIIFB CEO Denies FEMA Breaches in Masala Bond Case

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.

The Kerala Infrastructure Investment Fund Board (KIIFB) is under scrutiny as the Enforcement Directorate (ED) alleges violations in its use of funds from a 2019 masala bond issuance. The accusations fall under violations of the Foreign Exchange Management Act (FEMA), specifically regarding the use of Rs 466 crore for land purchases.

In a statement released on Facebook, CEO K M Abraham firmly dismissed the allegations, asserting that KIIFB adhered fully to FEMA provisions and the Reserve Bank of India's External Commercial Borrowing guidelines. He emphasized that every rupee has been properly accounted for, audited, and used for legitimate infrastructure development projects.

Abraham highlighted 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.

(With inputs from agencies.)