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Bharatiya Janata Party (BJP) Kerala Chief Rajeev Chandrasekhar on Tuesday slammed Chief Minister Pinarayi Vijayan over alleged violations of the Foreign Exchange Management Act (FEMA), in connection with the ongoing case of the Kerala Infrastructure Investment Fund Board (KIIFB). While suggesting that the party is using the "hard-earned taxes" of Malayalees as the Communist Party of India (Marxist)'s party fund, he said that just like the Sabarimala alleged gold loot, this too has to be investigated thoroughly.

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Chandrasekhar Questions High-Interest Foreign Loan

"Kerala borrowed Rs 2,100 crore abroad at 9.5% interest when cheaper options were available in India. Let's be clear - this is a liability that hangs over the heads of every Malayalee, who deserve answers. And then quietly paid Rs 21 crore as "commission." Every other state raises bonds within India - no commission, no foreign middlemen, no secrecy," the BJP leader wrote on X.

Questioning the CPM-led government, Chandrasekhar asked, "So why did Pinarayi go to London to raise money? Who got the Rs 21 crore commission? Why raise it abroad at 9.5%? Why avoid Indian markets where interest is lower? Who bears forex risk and was FEMA approvals sought as is required under law?"

These questions, he claimed, would have been answered by an honest government, "But CPM and its INDI partner Congress don't believe in honesty or accountability. These are Malayalees' hard-earned taxes - not CPM's party fund. So they can't escape accountability," he wrote on X.

Background of the KIIFB Case

The case concerns alleged irregularities in KIIFB's external commercial borrowings (ECB) through 'Masala Bonds' issued on the London and Singapore Stock Exchanges. Masala bonds are bonds issued outside of India but denominated in Rupees. The word was first initially coined by the International Finance Corporation (IFC) a member of World Bank Group.

ED Issues Show Cause Notices

Earlier, the ED had issued show cause notices to Kerala CM Vijayan and officials of the Kerala Infrastructure Investment Fund Board (KIIFB) in connection with alleged violations under the Foreign Exchange Management Act (FEMA), officials said. The notices were issued 19 days back on November 12, 2025, during adjudication proceedings, said the officials, adding "the noticees are not required to appear personally." Besides the Kerala CM (Chairman, KIIFB), the notices were issued to KM Abraham (CEO, KIIFB), T M Thomas Issac (Vice Chairman, KIIFB), and KIIFB. (ANI)