The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

The Enforcement Directorate’s (ED) action of registering a case against the Kerala Infrastructure Investment Fund Board (KIIFB) is a blatant misuse of the agency as a political tool by the BJP government at the Centre.

The Finance Minister, Nirmala Sitharaman, while addressing a BJP election meeting in Kerala made unfounded allegations against the KIIFB and the LDF government.  Following this, the ED has taken this totally unwarranted action.

The ED had registered a case of violation of FEMA norms and summoned the CEO and the Deputy Managing Director of KIIFB for questioning.  This is a serious assault on a state government-sponsored entity.  As a corporate entity, the KIIFB has the right to raise commercial borrowings.  It had issued masala bonds abroad as per Reserve Bank of India’s approval.

The ED action coming after the announcement of elections is all the more reprehensible as it is a blatant effort to try to discredit the LDF government and the extensive developmental work undertaken under the auspices of the KIIFB. It is a serious violation of the federal principle.

The Polit Bureau of the CPI(M) demands that the Finance Minister and the ED immediately rescind the case against KIIFB and stop harassment of its senior officers.