Thomas Isaac tells Kerala High Court he will appear before ED only if summons clearly sets out allegations

Former State Finance Minister Thomas Isaac told the Kerala High Court today that he is not willing to appear before the Enforcement Directorate (ED) in connection with the masala bonds case at present since the summons does not provide a clear indication as to why he should appear..Isaac's counsel told the Court that he is willing to appear before the ED only if the summons clearly sets out the allegations against him in the matter. The submission was made on Monday in response to a suggestion made by Justice Devan Ramachandran last week. .On February 16 (Friday), the judge had queried whether Isaac and officials of the Kerala Infrastructure Investment Fund Board (KIIFB) would be willing to attend the fresh summons issued by the ED in the case if the Court were to keep a watch over the matter.Today, officials of the KIIFB agreed to attend the summons, provided that such safeguards are put in place. However, Isaac expressed that he was reluctant to do so..Senior Advocate Arvind Datar appeared for the KIIFB and said that its officials were willing to appear before the ED, as suggested by the Court, provided that the whole interrogation is kept under the court’s watch and is filmed.Datar also pointed out that it was the CEO who was summoned by the ED. He requested that the Deputy General Manager (DGM) of KIIFB, Ajosh Krishnakumar, be allowed to go for the interrogation instead, along with two or three other officials who are aware of transactions relevant to the matter.He clarified that the CEO could appear subsequently if required, after the DGM is summoned.The Additional Deputy Solicitor General (ADSP) accepted Datar's suggestion. Accordingly, the Court noted that the suggested officials of the KIIFB would appear before the ED on March 27 and 28..Meanwhile, advocate Jaydeep Gupta appeared for Isaac and submitted that since KIIFB has agreed to appear before the ED, he could also consider attending the ED summons thereafter, if the ED were to provide a clear indication as to the allegations against Isaac..The matter will be heard next on March 7..The case before the Court involves allegations that the Foreign Exchange Management Act (FEMA) was violated in the KIIFB's issue of 'Masala Bonds' or rupee-denominated bonds issued outside India by Indian entities.Petitions were first filed by Isaac and KIIFB officials in 2022 before the High Court challenging the ED summons issued to them in the case.However, in December 2023, the ED informed the High Court that it had decided to withdraw the summons issued in the matter.At the time, the Court had clarified that the ED was still free to continue its probe in the Masala Bonds case.After the ED issued fresh summons to Isaac last month, Isaac and KIIFB filed another round of petitions challenging such action.