The Kerala High Court on Friday sought the responses of the State Government and Kerala Transport Development Finance Corporation Limited (KTDFC), a non-banking finance company owned by the Government, to a plea by a Kolkata-based company for a directive to the KTDFC to immediately release its four matured fixed deposits lying with the finance company.
When the petition filed by Lakshminath Tradelink Private Limited came up, Justice Devan Ramachandran observed that the State Government had to answer why the company was not giving back the matured deposit.
According to the petitioner, the KTDFC accepted deposits from the public with the State Government acting as a guarantor. The company had made four fixed deposits with the Government-owned non-banking finance company on an interest rate ranging from 6.75 to 7 per cent. When the fixed deposits reached maturity, the petitioner contacted the company’s managing director and requested the disbursement of the matured amounts.
Despite numerous requests and emails to KTDFC, there has been no response. The petitioner contended that KTDFC was bound to return the deposit amount with interest, and the Government, being the guarantor, should ensure that the matured deposits were released without delay.