Thiruanathpuram (Kerala) [India], December 1 : Leader of Opposition in Kerala, V.D. Satheeshan, alleged that the show-cause notice issued by the Enforcement Directorate against Chief Minister Pinarayi Vijayan and former Finance Minister Thomas Isaac over the Masala Bond issue is merely a scare tactic intended to benefit the BJP in Kerala.
The Leader of Opposition in Kerala questioned the timing of the notice, asking why it is being sent during the upcoming assembly election season. He alleged that the notice is intended solely to harass the CPM and the Chief Minister.
Satheeshan remarked that the trips to London were merely a public relations tactic, and the Masala Bond allegation represented one of the most serious corruption charges raised by the Opposition.

"The Masala Bond allegation was one of the most serious corruption charges raised by the Opposition. The money was borrowed at an unusually high interest rate claiming all procedures were followed. The explanation given by the then Finance Minister was completely wrong. After everything was over, they went to London just to ring the bell, it was only a PR stunt. He rang the bell in the capacity of Chairman, nothing more." I don't understand why this notice is being sent now when elections are around the corner. A similar incident happened in Karuvannur as well. This notice is only to harass the CPM and the Chief Minister. Earlier there was even a notice sent to the Chief Minister's residence; nothing came out of it," said Satheeshan.
"This is a scare tactic aimed at helping the BJP in Kerala. They know that we will not be intimidated. The notice won't go beyond this stage, all the remaining cases have already been settled. Massive corruption has taken place. When they went to London to ring the bell, what all claims were made? Today, it is fortunate that nobody is asking which KIIFB this even is," added Satheeshan.
Additonally, Senior Congress leader K Muraleedharan also called ED's show cause notice to Kerala Chief Minister Pinarayi Vijayan in the KIIFB masala bonds case is politically motivated, noting that it was a deliberate attempt by the centre to "force" the CPI(M)-led LDF government to adopt a "pro-BJP" stance ahead of upcoming assembly elections in the state set to take place next year.
Speaking to reporters, Muraleedharan alleged that the repeated issuance of notices to the Chief Minister suggests an attempt to influence political positioning in the state.
"The Chief Minister keeps receiving notices from time to time. The intention is to force him into taking a pro-BJP stand, especially with the elections approaching. But no matter who tries to lift the BJP, it will not rise. They may try to intimidate occasionally, but eventually they will settle down," the senior Congress leader said.
Earlier, the Enforcement Directorate (ED) issued show cause notices to Kerala Chief Minister Pinarayi 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.
The case concerned alleged irregularities in KIIFB's external commercial borrowings (ECB) through Masala Bonds issued on the London and Singapore Stock Exchanges.
Officials said the KIIFB had raised Rs 2,672.80 crore via rupee-denominated bonds for infrastructure funding.
However, it is alleged that "a portion of the raised funds -- amounting to Rs 466.91 crore -- was used for purchasing land, a transaction reportedly prohibited under Reserve Bank of India's Master Direction No. 5/2015-16 and Circular No. 17 dated September 29, 2015."