KOCHI: The Kerala High Court on Friday reserved its judgment on an appeal filed by the Enforcement Directorate (ED) challenging a single judge bench's interim order that stayed a show cause notice issued to the Kerala Infrastructure Investment Fund Board (KIIFB) under the Foreign Exchange Management Act (FEMA), in connection with the utilisation of funds raised through masala bonds.
The appeal was heard by a division bench of Justice Sushrut Arvind Dharmadhikari and Justice P.V. Balakrishnan.
The ED questioned the interim relief granted by the single judge's bench as well as the maintainability of the writ petition filed by the KIIFB.
Appearing for the ED, Additional Solicitor General A.R.L. Sundaresan submitted that the agency had only issued a preliminary notice under Rule 4 of the FEMA Adjudication Rules, calling upon the KIIFB to explain why adjudication proceedings should not be initiated.