Investment in Ambani's company by KFC; ₹100 crore loss, says V.D. Satheesan

V.D. Satheesan criticizes the allocation of crores to a sinking company. Opposition leader V.D. Satheesan alleged massive corruption behind the investment of crores by the state government institution, Kerala Financial Corporation (KFC), in Anil Ambani's company. As per the law, KFC's primary objective is to provide loans to industries, including MSMEs, within the state.

On April 26, 2018, KFC invested ₹60.80 crore in Anil Ambani's Reliance Commercial Finance Limited. However, the name of the company in which the investment was made was deliberately not disclosed in the annual report. According to the law, KFC is permitted to invest money only in the Reserve Bank or nationalized banks . The KFC board meeting for the 2018-19 financial year was held on June 18, 2018. However, the investment in Ambani's company was made on April 26, 2018. Since RCFL is an NBFC, it is not legally permissible to invest in it.

In 2019, RCFL was liquidated. Since March 2020, even interest has not been received. The 2020-21 annual report states that ₹7.09 crore was recovered when RCFL was liquidated. It is estimated that a total loss of ₹101 crore, including interest, was incurred on this investment.
The same approach that the Modi government at the Center shows towards corporate tycoons is being adopted by the Pinarayi Vijayan government in Kerala," said V.D. Satheesan. "While Modi writes off corporate debts, the Kerala government provided crores to Anil Ambani's sinking company