Kerala CM hits back at opposition over masala bonds issue

Kerala chief minister Pinarayi Vijayan Monday hit back at Congress-led UDF for criticising the masala bonds launched by state-owned KIIFB, saying those who wanted to 'stall' development were raisingcontroversies.

Addressing an election campaign meet in Tirur in Mallapuram district, he rejected allegations of irregularities in the issuance of the Rupee denominated overseas bonds, popularly known as masala bonds.

The bonds were purchased by a Canadian company after following all mandatory criteria.

Vijayan was reacting to senior Congress leader Ramesh Saturday alleging irregularities in the issuance of the bonds by the Kerala Infrastructure Investment Fund Board (KIIFB) to an overseas pension fund allegedly having links with a 'controversial' foreign company.

"KIIFB has been functioning by following all the rules and regulations. Some people are trying to delay the fund for development. Those who are daydreamingto stall the development through controversies will be disappointed," Vijayan said at an election campaign meet in Tirur in Mallapuram district.

"The bonds were purchased by the Canadian company after following all mandatory criteria... Those who do not want development in the state are raising such allegations," he charged.

The opposition leader and the BJP were speaking in the same voice, he said adding those making attempts to block development through controversies were only day-dreaming.

Meanwhile, Chennithala told reporters in Thiruvananthapuram that the masala bonds would put the next generation in debt.

"This bond, bought with high interest, will put the coming generations in huge debt. The government has not yet clarified which are all the companies that bought the bonds," he said.

The Congress leader had levelled charges of corruption against the ruling CPI(M)-led LDF government in the state in the midst of campaigning for the Lok Sabha elections to be held on April 23.

KIIFB, a state government agency, had raised Rs 2,150 crore through its debut masala bond issue last month.

This was not only the first-ever offshore capital market issuance from a state-level entity from the country, but also the largest dual currency issue by a sub-sovereign backed entity from the entire emerging markets and Asia, the KIIFB had said.