Ernakulam: The government has raised concerns over a significant financial crisis within the state, as revealed in an affidavit submitted to the High Court. The affidavit, filed in connection with the financial liability case of the Kerala Transport Development Financial Corporation (KTDFC), emphasizes the severity of the financial challenges faced by the government.
The case was heard before Justice Devan Ramachandran, who inquired whether this situation could be considered an economic emergency and questioned the government’s adherence to constitutional principles. The court has instructed the government to submit additional affidavits, with a revisit of the case scheduled for ten days hence.
The petition was initiated by Kolkata-based Lakshmi Nath Trade Links, alleging that funds invested under government guarantee have not been repaid. KTDFC is currently on the brink of closure due to its financial woes. Numerous investors, having placed substantial sums of money in the belief that it was a government-run institution, find themselves in dire straits due to the institution’s failure to repay funds even after the investment period has expired.
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