ED trying to threaten KIIFB officials, claims Kerala CM

Continuing his attack on Union Finance Minister Nirmala Sitharaman, Vijayan accused her of trying to ''destroy'' the KIIFB by raising ''baseless allegations'' against it and ''misusing'' the Enforcement Directorate (ED) under her ministry for political purposes.

The ED, probing the state-owned agency's external borrowings through 'Masala Bonds', made attempts to threaten state government officials after summoning them into their office, he alleged.

He said legal action would be initiated against such central agency officials.

''Union Finance Minister Nirmala Sitharaman, who is also a senior leader of the BJP, is raising baseless allegations against KIIFB which ushers in unprecedented development in the state'', Vijayan told reporters here and referred to her allegations against KIIFB at a recent poll rally in Tripunithura.

Vijayan alleged that as the people dismissed her charges, ''she began her effort to destroy it misusing the Enforcement Directorate under her ministry.'' ''Some investigators of the central agency were now showing undue hastiness to implement their political bosses' orders,'' he claimed.

Vijayan lashed out at the Centre over the issue after the Enforcement Directorate summoned top officials of KIIFB.

The chief minister claimed that the ED had no interest in collecting information from the KIIFB officials for the probe.

''There were even instances in which women officials of the body corporate, summoned by them, were subjected to improper behaviour, crossing all limits,'' Vijayan alleged.

He said even before the KIIFB officials received the summons from the ED, the news was leaked to the media.

''This was aimed at creating a special kind of political atmosphere in the state ahead of elections,'' the Chief Minister said.

He alleged that in the ED probe against KIIFB, there were even attempts to threaten state officials and thus make them give statements according to the demands of the political big bosses at the Centre.

''The investigators had taken a stand that they would not even mind physically assaulting the state officials.

But the central agencies should keep in mind that there are laws in this country to resist such unwarranted moves.

Rule of law still persists in this land,'' Vijayan said.

When asked if the government would take legal course against the ED, the Chief Minister said if anyone takes unlawful steps, it would be resisted legally.

''It was not right to take a stand that central officials were above all others. They have the responsibility to behave properly to the state officials, who are being summoned by them,'' he said.

There was a complaint that ED officials had behaved in an improper manner to the KIIFB personnel, he said.

''Naturally, it would invite legal action.Everyone has the right to lodge a complaint.Naturally, the authorities concerned would take action in this regard. The central agencies cannot act according to their whims and fancies.'' Vijayan said it was not the first time that the central agencies were acting against the state government.

''We have even sent a letter to the Prime Minister explaining this. For whose behalf are they acting like this? Is it for the party ruling at the Centre or for the opposition Congress which endorses whatever the saffron party says,'' Vijayan said.

Vijayan, who wrote to the Election Commission on Wednesday against the ED probe during the time of elections, on Thursday said: ''the model code of conduct is already being in force in the state.But, certain things are happening here against its rules and norms.'' Vijayan dispatched the letter after the Enforcement Directorate summoned top officials of the KIIFB.

He said the KIIFB had issued 'Masala Bonds' by obtaining necessary permission from the Reserve Bank of India.

''If anybody tries to attack us on the basis of baseless allegations, we are not ready to surrender before them.We are accountable to people,'' Vijayan added.

Masala bonds are specialised debt instruments issued outside India but denominated in Indian Rupees, rather than the local currency.