Kerala finance minister Thomas Isaac on Monday accused the Congress of aligning with an RSS plot to sabotage key infrastructure development in the state.

The finance minister attacked state Congress general secretary Mathew Kuzhalnadan — a lawyer by profession — for appearing for a leader of RSS affiliate Swadeshi Jagran Manch that moved the high court against Kerala Infrastructure Investment Fund Board (KIIFB) borrowing funds from the bond market.

State convener of Swadeshi Jagran Manch Ranjith Karthikeyan had recently moved Kerala High Court against the KIIFB, with Kuzhalnadan appearing for the petitioner.
The petitioner had sought judicial intervention in freezing all funds the KIIFB raised by issuing bonds.

Isaac said in a media statement that it was RSS leader and BJP national general secretary Ram Madhav who gave the clearance to file the case against the KIIFB and described Kuzhalnadan as the hatchet man in the plot to sabotage the infrastructure development in the state.

The KIIFB has so far committed Rs 60,000-crore worth projects covering government schools, roads and bridges. While projects worth Rs 5,400 crore are complete, tender process is on for public works costing about Rs 30,000 crore.

Kuzhalnadan rubbished the allegations and said he was only doing his job as a lawyer and would quit public life if the finance minister could prove his allegations.

“If the finance minister can prove that I had met any RSS leader anywhere in the country over the KIIFB or any other matter, I will end my political career then and there,” said Kuzhalnadan.

The Congress leader insisted that he stood by his arguments that the KIIFB borrowings did not have proper approvals from the Reserve Bank of India.

“From what I know, the RBI had only given an NOC (no objection certificate) and not an approval for such borrowings,” said Kuzhalnadan.

But the finance minister, who addressed a news conference in Alappuzha, countered by pointing out how the KIIFB was allowed to raise Rs 2,150 via masala bonds (rupee denominated bonds) in London Stock Exchange last year.

“Does he think that we could have enlisted the bonds in London Stock Exchange without the RBI’s approval?” Isaac asked.

“This is about the rights of a state to borrow money,” he said adding that nowhere was the state proscribed from seeking loans to the KIIFB.

Isaac reminded the Congress that has taken up cudgels on behalf of Kuzhalnadan that even the states ruled by the party had been fighting the Centre’s attempt to stop them from taking loans.

“Even Congress governments in various states had joined us in fighting against the Centre for trying to deny states the right to take loans,” he said.