THIRUVANANTHAPURAM: Finance Minister K N Balagopal on Thursday defended the Kerala Financial Corporation (KFC) in the row over its losses due to an investment in the Reliance Commercial Finance Limited (RCFL).
The investment was made in adherence to legal requirements, he told mediapersons in response to the corruption allegation raised by Opposition Leader V D Satheesan.
The Opposition Leader had alleged corruption in the KFC’s investment of Rs 60.80 crore in the RCFL, which he said was sinking at the time.
He also alleged that the decision was made without the concurrence of the board of directors.
Defending the KFC, Balagopal said investment decisions are made as per the prevailing situation and rating of a company. RCFL had a good rating at that time.
Investment decisions are made by the investment committee of the corporation. There is a case in the Mumbai High Court to recover the amount, he said.
The investment in the company was in adherence to the central law State Financial Corporations Act, 1951, Balagopal said.