Kerala leaders face a ₹466-cr show cause over alleged foreign exchange rule violations in a 2019 bond issue.

The Enforcement Directorate has issued a Rs 466-crore show cause notice under FEMA to Kerala Chief Minister Pinarayi Vijayan, former Finance Minister T.M. Thomas Isaac, and KIIFB CEO K.M. Abraham over alleged violations in the 2019 masala bond issuance, which raised Rs 2,150 crore. The notice, based on a three-year investigation, alleges improper use of funds for domestic projects and breaches of foreign exchange rules, though officials maintain RBI approvals were obtained. The case is under adjudication, with respondents given 30 days to respond; penalties could reach 300% of the amount raised. The move has drawn political criticism, with opposition leaders calling it politically motivated ahead of elections.