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Masala bond corrupt deal, not good for Kerala: Congress

IANS  |  Thiruvananthapuram 

of Opposition in the Assembly Ramesh on Wednesday said the Rs 2,150 crore masala bond is a corrupt deal that will be financially detrimental for the state.

Addressing the media here, the senior said is going to sound the "bell" of corruption at the (LSE) on Saturday, when the masala bond of the Infrastructure Investment Fund Board (KIIFB) would be listed.

"This is a corrupt deal with the black-listed company. himself is in the dark in the case. The KIIFB on March 26 had opened this and closed it on March 29," he said.

"It was initially said this would be a public issue but was turned into a privately placed one in province of with CDPQ, a Canadian company engaged in multi-activities purchasing this bond," he added.

The said first denied the role of but later agreed that has stakes in the black-listed

"The entire truth in the masala bond has been camouflaged and we will fight this legally and politically," he said.

pointed out that the masala bond will cause a huge dent in the already poor financial position of the as it has been purchased at an exorbitant 9.72 per cent rate of interest.

Former Left ally (RSP) in Kerala had written to the Communist Party of (CPI-M) Sitaram Yechury, pointing out the present controversy on the listing of the masala bond in the LSE as a stark diversion from the Communist ideology which is a fight against neo-liberalism and imperialism.

SNC Lavalin was blacklisted by the V.S. Achuthanandan-led Left government (2006-11) over allegations that an agreement with them in 1997 for the renovation and modernisation of the Pallivasal, Sengulam and Panniar hydroelectric projects in the state's district caused a loss of Rs 266 crore to the state exchequer.

This deal was inked when was the and the Oommen Chandy-led government had, in 2006, called for a (CBI) probe into the entire agreement.

Even though the CBI chargesheeted Vijayan, he got relief from the in 2017.

But later, the CBI approached the and demanded that Vijayan face trial. The apex court is expected to give its final orders on this very soon.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 15 2019. 17:04 IST