KOCHI: Government said in the high court that it cannot assume the liability of the Kerala Transport Development Finance Corporation (KTDFC) as it is in dire financial straits. Justice Devan Ramachandran directed to file a new affidavit and criticized the government's stand as a shame for Kerala.

The court was considering the petitions filed by Laxminath Trade Link Pvt. Ltd. of Kolkata, which should get back more than 30 lakh rupees. The government is of the view that this is an issue that should be resolved by KSRTC and KDTFC.
The court inquired as to how it is possible for the government to withdraw from the responsibility after accepting investment in guarantee, and whether will it not be necessary to take measures such as confiscation of the government's properties if this position is adopted.

Are you saying that KTDFC should be liquidated? If so, who will be ready to invest in the state? The court asked.

According to the government's affidavit, KSRTC cannot provide assistance for daily needs. The government lawyer stated that the government cannot take responsibility because of the guarantee and currently the KTDFC needs 151 crore rupees.