Kerala Chief Minister Pinarayi Vijayan seems to be facing increasing troubles. A FEMA violation notice has been issued against KIIFB and its high-ranking officials, questioning an amount of 466 crore rupees. Pinarayi Vijayan is the chairman of KIIFB.
Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan's troubles appear to be escalating constantly. The Enforcement Directorate (ED) has issued a notice to the Kerala Infrastructure Investment Fund Board (KIIFB) and its top officials regarding a violation of the Foreign Exchange Management Act (FEMA). This case involves alleged irregularities amounting to approximately 466.91 crore rupees. Pinarayi Vijayan is the chairman of KIIFB, which has led to questions being raised about his role in this matter.
Who received the notice?
The ED sent a show-cause notice to KIIFB and its senior officials on November 12, 2025. Those who received the notice include:
- Pinarayi Vijayan – Chairman, KIIFB
- K.M. Abraham – CEO, KIIFB
- T.M. Thomas Isaac – Vice Chairman, KIIFB
The notice accuses these officials of violating FEMA regulations.
What is the case?
According to sources, KIIFB had raised 2672.80 crore rupees by issuing Masala Bonds on the London and Singapore Stock Exchanges. This amount was obtained under External Commercial Borrowing (ECB). The ED alleges that 466.91 crore rupees from this fund were spent on land acquisition. However, according to RBI regulations, funds raised through Masala Bonds cannot be used for purchasing land.
Specifically, under RBI's Master Direction 2016, Circular 2015, and instructions dated June 1, 2018, this action is considered illegal. The ED believes that this step directly violates FEMA.
When was the complaint filed?
The ED had filed a complaint in this matter on June 27, 2025. After taking cognizance of the case, the Adjudicating Authority issued a notice to KIIFB and its senior officials on November 12, 2025. This case involving Pinarayi Vijayan is creating political stir in Kerala. Recently, Congress General Secretary C. Venugopal stated that Kerala Chief Minister Pinarayi Vijayan is a ‘secret agent’ of the central government.
Earlier, State Minister V. Sivankutty had called the Congress leader and Alappuzha MP a ‘secret agent’ sent by the BJP to weaken the party. Following this, Venugopal also targeted Pinarayi along similar lines. From both political and legal perspectives, this case has become a focal point of discussion.
