Kochi: The Kerala High Court on Tuesday declined the Kerala Kerala Infrastructure Investment Fund Board's (KFIIB) plea to stay the series of summons issued by the Enforcement Directorate (ED).
KIIFB raised its objection while the court considered its plea that ED has no authority to investigate the alleged FEMA (Foreign Exchange Management Act) violations. KIIFB claimed that the Reserve Bank of India (RBI) should be authority to probe such violations.
The court orally asked ED's response when KIIFB claimed that continuous summons were obstructing its work. In its reply, ED told the court that it would file a detailed affidavit in this regard.
With this the court adjourned the case to September 2.
ED has sent summons to KIIFB claiming FEMA violations in the issue of Masala Bonds. KIIFB, its CEO KM Abraham and the joint fund manager had moved the High Court against these summons.