Thiruvananthapuram: Kerala Transport Development Finance Corporation (KTDFC), a Kerala government-owned NBFC, has urged the administration to expedite the procedures to make available the money to settle the depositors. The intimation comes as KTDFC is struggling to return the crores of money owed to depositors, whose fixed deposits have completed the maturity period.

Officials at the KTDFC maintained that the institution has plunged into crisis, owing to the default payments from the KSRTC. KTDFC can only restart several of their activities including accepting deposits, only if KSRTC clears a major share of their dues.

In the year 2018, KSRTC was entitled to pay Rs 595 crores to the corporation. But, now the amount has almost doubled to the range of RS 912 crores, coupled with interest. KSRTC failed to make the payment despite repeated requests from KTDFC. As a result, the funds of the finance corporation plummeted, forcing the Reserve Bank to block it from accepting any more deposits.

Now, much to the relief of the KTDC officials, the state government has paid Rs 55 crores to KTDFC, on behalf of KSRTC. This helped the finance corporation to pay back a few of its depositors. The state government also released a press note declaring support for KTDFC.    

The finance corporation has also handed over a list of the matured deposits at its disposal and their repayment dates to the finance department in the month of June, earlier this year.

Dr B Ashok, Chairman and Managing Director of KTDFC, has asked the depositors not to panic, as the Kerala government has guaranteed to look after the proceedings, as per the instruction of the RBI.