HC raps ED for repeated summons to Thomas Isaac, KIIFB officials

The Kerala High Court on Monday rapped the Enforcement Directorate (ED) for summoning former Kerala finance minister Thomas Isaac repeatedly in connection with the probe into alleged violations by KIIFB, saying there was “no justification”.

The court directed ED not to issue any summons in the case for two months to Isaac, KIIFB CEO K Mathew Abraham and fund manager Anie J Thomas.

Justice V G Arun said the investigation into the case was not liable to be interdicted and impleaded the Reserve Bank of India as a party in the matter and listed both pleas for further hearing on November 15.

The directions were issued by the court on the pleas of Thomas Isaac challenging the summons issued to him.

KIIFB, in its plea, has challenged the repeated summons to its officials, including its CEO Kandathil Mathew Abraham and its joint fund manager Anie J Thomas, and also opposed the ED probe saying that it was hampering its ability to raise funds for development projects in the state.

Thomas Isaac, in his plea, has contended that the agency has no power to question him or ask for his personal information or details just because he was the former head of KIIFB and presently its ex-officio member.

Also read: ‘Harassment’, says Thomas Isaac as ED serves second notice in KIIFB case

He has further contended that the ED was attempting to conduct a fishing and roving enquiry into the activities of KIIFB and such enquiries have been time and again been deprecated by the top court.

He has claimed that the summons issued to him do not reveal the nature of the violation, if any, by him of the provisions of the Foreign Exchange Management Act (FEMA) or as to what is the investigation in relation to which his response is sought.

Therefore, the “summons are ex-facie illegal and beyond the jurisdiction of the scope of inquiry contemplated under the FEMA since admittedly there is no violation of any provision of the said Act”, Isaac has also claimed in his plea.

The ED had served a notice to the senior Marxist party leader last month, seeking his appearance before it on July 19. He, however, did not appear before the central agency, saying he had to attend classes at a party-run institute in the state capital.

The second notice seeking his appearance was sent by ED in the first week of August after which he moved the high court challenging the summons.

(With agencies inputs)