Kerala High Court Stays Masala Bonds Case Proceedings

The Kerala High Court has temporarily halted further proceedings related to the Enforcement Directorate's show cause notice to the Kerala Infrastructure Investment Fund Board (KIIFB) in the Masala Bonds case. The decision stays the prior single judge's order and awaits appeal hearing in January 2026.

The Kerala High Court has issued a stay on the enforcement of a prior ruling that paused proceedings linked to the Enforcement Directorate's (ED) show cause notice to the Kerala Infrastructure Investment Fund Board (KIIFB) regarding the Masala Bonds case.

Justices Sushrut Arvind Dharmadhikari and P V Balakrishnan ruled that the single judge's December 16 decision will be suspended until January 5, 2026, when the ED's appeal will be heard. The ED had challenged the single judge's order, which had been delaying proceedings for three months.

The court has accepted the appeal for hearing and has issued a notice to KIIFB to present their stance by the next hearing date. The court reserved its judgment on the ED's appeal after considering arguments from both the agency and KIIFB earlier in the day.

(With inputs from agencies.)