[Masala Bonds Case] Not Proper To Compel Candidate To Answer ED Summons Immediately Before Lok Sabha Elections: Kerala High Court

The Court passed the above order in a plea filed by Dr Isaac challenging the summons issued against him by the Enforcement Directorate (ED) in connection with the masala bonds case.

Last week, the Court directed the ED to convince the Court regarding at least a single transaction proving any illegal conduct of Dr Isaac. Pursuant to the order, the ED today submitted documents for the perusal of the Court. On perusing the documents submitted by the ED, the Court stated that some transactions require some explanations.  

Justice T R Ravi adjourned the case till the completion of the elections by stating that:

"I have gone through the files placed before me and I do not think it is proper stage to disclose details since these are matters to put to the persons facing investigation. However, I find that some transactions require explanations and the manner in which the explanations are received by the ED will be considered a later stage since the elections are due and the petitioner (Dr Issac) is also a candidate.

I think it is not proper to disturb a candidate who is facing an election for a representation in the Parliament at this stage, particularly because only less than a month is available for completing the elections,” the Court added.

KIIFB has also filed a separate plea challenging the summons issued against it to appear before the ED. However, pursuant to the directions of the Court, the officers of the KIIFB answered the summons and appeared before the ED.

The Court dismissed an impleading application filed by M R Ajayan, Editor of Green Kerala News. He filed an impleading application before the Court stating that he is interested in the outcome of the case and has been following the masala bond issue since the beginning.

He alleged that Dr Isaac was using dilatory tactics to delay the ED investigation. He further alleged that this is similar to the case of Chief Minister Arvind Kejriwal who was also trying to evade investigation in the alleged liquor policy case who was ultimately arrested by the ED.

The Court also dismissed the impleading application as Ajayan was not a necessary party in this matter. The court added that Ajayan can continue following the case without being impleaded to satisfy his inquisitive nature as a journalist.

The Court stated that there was no reason to implead a third party in this case and dismissed the impleading application.

It said, “There is no scope for a third person to interfere or intermeddle in these proceedings which is purely between the person who is summoned (Dr Isaac) and the summoning officer….It is for the summoning officer to justify the summons issued and it is for the petitioner to say how he is not liable to be summoned. There is no scope for any third parties in it. There is no reason to allow the impleading application and hence it is dismissed”,

The impleading application was moved by Advocates B A Aloor, Prasanth KP, Krishnasankar D, Asokan K V, Haseeb Hasan M, Rebin Vincent Gralan.

Senior Advocate Jaideep Gupta appeared on behalf of Dr Issac, Senior Advocate Arvind Datar appeared for KIIFB and Additional Solicitor General of India (ASGI) A.R.L.Sundaresan, instructed by Standing Counsel Jaishankar V.Nair appeared on behalf of the ED.

Case title: Thomas Issac v Deputy Director, Kerala Infrastructure Investment Fund Board V Director

Case number: WPC 3719/2024 & WPC 1377/2024