No decision on setting up \"Islamic Bank\" in Kerala

THIRUVANANTHAPURAM: Kerala State Industrial Development Corporation did not take any decision to set up an \"Islamic Bank\" in the state but had a proposal to start a non-banking financial institution functioning on non-interest basis, industries minister Elamaram Kareem said.



However, Janata Party leader Subramanian Swamy had filed a petition in Kerala High Court challenging KSIDCs proposal to invest 11 per cent stake in it.



Admitting the petition, the High Court had on January 5 issued notices to the state government, KSIDC, finance secretary to Union Government and RBI Governor, the minister said in replies furnished in the state assembly today.



The petitioner had sought a direction from the court to quash the order on setting up such an institution.



A meeting of promoters convened by Industries Minister in July last decided to form a public limited company to start such a financial institution and mobilized Rs 4.20 crore as initial capital from 14 promoters, he said.