You are here: Home » News-IANS » Business-Economy
Business Standard

RSP writes to Yechury to come clean on masala bond

IANS  |  Thiruvananthapuram 

Former Left ally (RSP) in on Monday wrote to CPI-M pointing out the present controversy on the listing of the masala bond in the (LSE) as a stark diversion from the Communist ideology.

A row erupted last week after the Infrastructure Investment Fund Board (KIIFB) concluded its debut international issue and closed the Rs 2,150-crore masala bond.

Both the and the alleged that one of the main investors was Canada's CDPQ that has invested in SNC-Lavalin which is black-listed in

Former Kerala and senior RSP in his letter to Yechury pointed out that Kerala has decided to float masala bonds at an exorbitant 9.72 rate of interest.

"Shockingly, the masala bond which is a brain child of the Modi dispensation has been embraced by CPI-M. This is in sharp contrast to yours and other Left parties fight against neo-liberalism and imperialism," wrote John, whose father Baby John was a towering RSP in the state.

"Moreover, Left parties have been accusing the party of following neo-liberal policies, which you feel is against national interests.

"In this context, I request your good self to kindly give a clarification in this matter as to whether the above line is consistent with your ideological position. If you find it consistent, the very basis of criticizing economic policies should be stopped forthwith," he said.

On Monday, Chief told an election rally in Malappuram that all those who were up in arms against this wanted to prevent Kerala from progressing.

"Those who are opposed to this are those who do not wish Kerala to progress. This is a scheme which has been cleared by regulatory bodies and is going to be listed at the LSE. This Canadian company is really big. has taken huge loans from the and now he is arrested. Does that mean that SBI is tainted," asked Vijayan.

But former Chief pointed out that not long ago the very people who were speaking of Kerala's progress had thrown on officials and locked up the officials of the when they came to give loans for Kerala's needs.

of opposition asked Vijayan to come clean on whether he met top officials of Lavalin when they were here for a few days last month.

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 Vijayan was the and the Oommen Chandy-led Congress government had, in 2006, called for a probe into the entire agreement.

Even though the CBI charge-sheeted Vijayan, he got relief from the Kerala High Court, getting discharged 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 after the summer vacations and the Lok Sabha polls in April-May.



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

First Published: Mon, April 08 2019. 18:38 IST