Thiruvananthapuram: Kerala Transport Development Finance Corporation (KTDFC), a non-banking financial company owned by the Government of Kerala, is struggling to return crores it owes to investors. KTDFC owes around Rs 490 crore received as fixed deposits to investors after the expiry of term. 

The Reserve Bank also informed KTDFC that it will revoke its license to operate as a non-banking financial institution if it fails to return deposits at the earliest. 

It should be noted that KTDFC accepted deposits under the state government guarantee. As a result, the Reserve Bank concluded that the government is obligated to repay the amount. Many depositors have sought their investment back due to the company's current financial problems.

Meanwhile, North Indian natives who had invested in the KTDFC also alleged that concerned authorities in the firm are yet to reply to their queries and letters. 

Earlier, RBI intervened when many investors, including Sri Ramakrishna Mission, complained about the ongoing crisis at KTDFC. Following this, the Reserve Bank directed KTDFC to return the deposits by April 2023.

However, KTDFC officials believe that the current situation results from KSRTC's failure to repay Rs 360 crore loan, which has increased to Rs 900 crore, including interest. 

KTDFC also demanded the state government to return this money. Despite numerous discussions, the state Finance Department has failed to allocate the sum to KTDFC.