[Masala Bonds Case] Probe Delayed Due To Non-Cooperation Of Dr Thomas Isaac, Conduct Unbecoming Of Law Abiding Citizen: ED To Kerala High Court

In an affidavit filed by its Deputy Director before the bench of Justice TR Ravi, ED said Dr Thomas was Chairman of the Executive Committee and Vice Chairman of the General Body Committee and was instrumental in making decisions regarding the utilization of funds in connection with the masala bonds. However, he did not appear despite issuance of summons and direction from the Court to cooperate with the investigation.

ED said it is important to record Thomas' statement because he was involved in the decision-making process and might be aware of the inconsistencies in utilization of KIIFB funds.

Additional Solicitor General of India (ASGI) A.R.L.Sundaresan, instructed by Standing Counsel Jaishankar V.Nair submitted there is no stay by the High Court and thus the agency is free to issue summons and carry the investigation. As per ED, Dr Thomas has not even submitted any documents to prove his innocence.

ED further alleged that Dr Thomas was giving statements to the Media challenging the authority of the Court and other officials. “His conduct has been unbecoming of a law-abiding citizen and the Directorate of Enforcement has to resort to measures under the act to enforce the summons”, stated the counter affidavit.

Separate pleas were filed by KIIFB and Dr Thomas challenging the ED summons. Pursuant to the directions of the Court, the officers of the KIIFB answered the summons and appeared before the ED.

The matter has been posted for further hearing on May 22, 2024.

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

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