KOCHI: The Kerala Infrastructure Investment Fund Board (KIIFB) on Thursday approached the High Court seeking to quash the Enforcement Directorate’s adjudication notice issued in connection with alleged violations in its 2019 Masala Bond transaction.
After hearing preliminary arguments, the court posted the matter to Tuesday for consideration of an interim stay.
In its plea, KIIFB urged the court to suspend all proceedings under the ED notice until a final decision is taken.
The agency’s objection stems from its finding that KIIFB diverted Masala Bond funds for real estate purchases -- an allegation the state funding agency firmly disputes.
KIIFB argued that the money raised through the Masala Bond was deployed strictly for state development projects, including land acquisition for infrastructure initiatives.
It maintained that this process did not amount to engaging in real estate activity, as alleged by the ED.