HC seeks response of govt., KTDFC on non-release of FD amounts

The 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 with the finance company. According to the petitioner, Lakshminath Tradelink Private Limited, the KTDFC accepted deposits from the public with the State government acting as a guarantor. The company had four fixed deposits with the government-owned non-banking finance company at an interest rate ranging from 6.75% to 7%. When the fixed deposits attained maturity, the petitioner requested the disbursement of the amounts. Despite numerous requests, there had been no response. The KTDFC was bound to return the deposit amount with the interest and the government, being the guarantor, should ensure that the matured deposits were released without delay, the petitioner contended.