Minister KN Balagopal Defends Reliance Trust Investment Decision

By A Staff Reporter

Thiruvananthapuram, Kerala: Kerala Finance Minister KN Balagopal has defended the decision made by the Kerala Financial Corporation (KFC) to invest in the Anil Ambani-owned Reliance Trust, which subsequently faced financial difficulties. Balagopal, addressing a press conference, clarified that many banks and financial institutions had made similar investments at the time, which ultimately collapsed due to unforeseen financial challenges.

“The investment decision taken at that time was aimed at improving the rating of the Kerala Financial Corporation. Unfortunately, it faced some financial difficulties, which led to the collapse,” Balagopal explained. He further stated that the case is currently under review in the Bombay High Court, and a restructuring process is underway.

Balagopal dismissed allegations that the decision made by the KFC board was improper, asserting that such incidents had occurred in various organizations across the country. “The allegation that the decision of the board was not proper is not correct because such incidents happened to many organizations,” he said.