Thu Jan 02 05:55:19 UTC 2025: ## Kerala Opposition Demands Probe into ₹100 Crore Loss by State Finance Corporation
**Thiruvananthapuram, January 2, 2025** – Kerala’s Leader of the Opposition, V.D. Satheesan, has called for a corruption investigation into the Kerala Finance Corporation (KFC) over alleged losses of ₹100 crore to the state exchequer. The alleged losses stem from a ₹60.8 crore investment in the now-liquidated Reliance Commercial Finance Limited (RFCL) during 2018-19.
Satheesan claims KFC, responsible for lending to small and medium-scale enterprises, invested in RFCL despite warnings of the company’s precarious financial situation. He alleges that the KFC’s Asset Liability Management Committee (ALCO) disregarded these warnings and concealed the investment from the board, violating regulations that restrict KFC investments to Reserve Bank of India or nationalized banks. Furthermore, the investment was reportedly not disclosed in publicly available annual reports.
The RBI liquidated RFCL in 2019, leaving KFC without its investment or interest payments. Satheesan accused the ruling Left Democratic Front (LDF) government of complicity, citing the Finance Department’s refusal to answer questions about the investment. He suggested a potential conspiracy involving hefty commissions, noting the lack of collateral or guarantees for the investment.
Satheesan demanded the government release records of KFC’s investments and criticized the LDF’s alleged practice of writing off loans of loss-making corporations at public expense, mirroring a similar policy at the central government level. He contrasted KFC’s aggressive pursuit of loan recovery from small businesses with its inaction in recovering the RFCL investment.
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