A Bench of Justice V.G. Arun issued the interim stay on further proceedings on the matter, in a plea filed by KIIFB challenging a notice issued against the board by the ED in connection with the usage of funds generated through masala bonds for infra development in the State. The ED had initiated proceedings under the Foreign Exchange Management Act.
The KIIFB had earlier this month approached the High Court seeking to quash the notice. Stating that the ED often issued such notices during election time, the board contended that there was no hassle in spending the funds to purchase land for infra development, and that everything was being done in adherence to Reserve Bank of India norms.
It further said that land acquisition for infra-projects cannot be equated with real estate activity, or land purchase for commercial use. Moreover, ₹90,000 crore worth infra projects that the KIIFB approved have been affected due to the ED action.
The ED opposed the plea of KIIFB, stating that it was not maintainable, since it had only issued notice, seeking explanation on the issue. It contended that the board had to approach the appropriate forum under the Foreign Exchange Management Act on the matter.
Published – December 16, 2025 08:39 pm IST
