Overview
- Justice V.G. Arun stayed further proceedings on ED show-cause notices to Pinarayi Vijayan, T.M. Thomas Isaac and KIIFB CEO K.M. Abraham for three months.
- ED alleges about Rs 466.91–467 crore from KIIFB’s 2019 rupee-denominated bond proceeds was used to buy land, treating it as prohibited real-estate activity under FEMA/RBI directions.
- KIIFB and the officials say infrastructure-related land acquisition is allowed under the 2019 ECB framework, citing prior RBI clearance, monthly ECB-2 filings and full bond redemption in March 2024.
- The court had earlier granted KIIFB a similar three-month stay; ED has moved a division bench challenging the single-judge order, with both matters listed for detailed hearing in January 2026.
- KIIFB warns that continuing adjudication would dent investor confidence and ratings and could disrupt execution of projects valued at roughly Rs 90,000 crore.