The Kerala High Court on Thursday stayed for three months the show cause notices and proposed proceedings initiated by the Enforcement Directorate against Chief Minister Pinarayi Vijayan and two others in connection with alleged foreign exchange violations by the Kerala Infrastructure Investment Fund Board, Bar and Bench reported.

The court also stayed notices issued to former state finance minister TM Thomas Isaac and KM Abraham, the chief executive officer of the board.

Justice VG Arun passed the interim order on a joint petition filed by the Vijayan, Isaac and Abraham and issued a notice to the Enforcement Directorate on the contentions in the petition, PTI reported.

Earlier in the week, the court had granted a similar three-month stay on the show cause notice and adjudication proceedings against the investment board itself. The judge on Thursday said that the same relief would apply to the three petitioners.

The Enforcement Directorate informed the court on Thursday that it would file an intra-court appeal against the order, Bar and Bench reported.

The central agency is investigating whether about Rs 2,150 crore raised through masala bonds issued in 2019 and listed on the International Securities Market in London were used to purchase land in alleged violation of Foreign Exchange Management Act norms.

In another complaint, the probe agency alleges this amounted to prohibited “real estate activity” under the Reserve Bank of India’s 2015 Master Directions, Bar and Bench reported.

Masala bonds are bonds that are issued outside India but are denominated in Indian rupees. They allow Indian companies to raise capital from foreign investors in Indian currency, and are usually used to fund infrastructure projects.