THIRUVANANTHAPURAM: The serious allegations raised by Opposition Leader VD Satheesan against Kerala Financial Corporation (KFC), a profit-making public sector enterprise, have put the government on the defensive. Satheesan, during a press conference, alleged that despite knowing that Anil Ambani’s company was on the brink of collapse, Rs 60.80 crore was invested in 2018, leading to a total loss of Rs 101 crore, including interest.

The investment in Reliance Commercial Finance Limited (RCFL) was made without even discussing it in the director board meetings. This information was also concealed in the annual report. Satheesan accused left-affiliated union leaders in KFC of orchestrating this embezzlement with the support of the first Pinarayi Vijayan government. The company was liquidated in 2019, and only Rs 7.09 crore was recovered. A total of Rs 109 crore, including interest, was due, resulting in a Rs 101 crore loss.

"Although Anil Ambani's companies faced severe financial crises between 2015 and 2018, money was deliberately invested in the company. This means that the money was not invested by mistake. Senior officials, with the knowledge of the government leadership, had taken massive commissions for this deal," Satheesan said, implicating the then Finance Minister Dr Thomas Isaac without naming him.

Satheesan further alleged that the government has done nothing so far to recover the money. While he had raised a question about this issue to the Finance Minister during the 11th Legislative Assembly session, no response was provided. He demanded the disclosure of transaction agreement documents and a thorough investigation into the corruption allegations.

Nothing illegal has taken place
Finance Minister KN Balagopal stated that there was nothing illegal in the investment made in RCFL and that KFC is operating in accordance with central laws. "A business can experience both profits and losses. When the investment was made, RCFL had a high rating. Leading institutions such as Yes Bank, Canara Bank, NABARD, and Union Bank invested around 8,000 crores in the company," the minister said.

"An investment committee consisting of experts makes the investment decisions, and the director's board typically gives its approval afterwards. KFC, which is operating profitably, is not facing any crisis. Opposition Leader VD Satheesan held the press conference at the same time when Ramesh Chennithala was attending the function at the NSS headquarters. Another Congress leader also held a press conference in Ernakulam at the same time. This is their internal matter, and there might be some political motives behind these moves," he said.

KFC has a profit of 74.4 crores

Under this government's leadership, 57 public sector enterprises have become profitable, with KFC. leading the pack. Last year, KFC's profit was 74.4 crores, and it has investments worth 65,000 crores.