Corruption Allegations Surface: Kerala Financial Corporation and the Rs 101 Crore Controversy

Kerala Financial Corporation faces allegations of corruption for an investment in Reliance Commercial Finance Limited, causing a Rs 101 crore loss. The opposition demands investigation, while officials deny wrongdoing, emphasizing adherence to regulations. The controversy revolves around a dubious investment decision allegedly made with corrupt intent.

The state-owned Kerala Financial Corporation (KFC) is under fire after Leader of the Opposition V D Satheesan accused it of severe corruption, alleging a Rs 101 crore loss to the state's finances. The accusation involves an unlawful investment in the financially troubled Reliance Commercial Finance Limited (RCFL).

V D Satheesan raised these concerns during a press conference, claiming that in 2018, KFC diverted Rs 60.8 crore, intended for state industries, into RCFL. He pointed out the dubious timing of the decision during KFC's Asset Liability Management Committee meeting, at a time when Anil Ambani's firms were facing financial turmoil.

While the opposition calls for a detailed investigation into the matter, former Finance Minister T M Thomas Isaac and State Finance Minister K N Balagopal refuted the allegations. They insisted the investment followed established laws, with RCFL having received a favorable credit rating from India's top agencies.

(With inputs from agencies.)