In 2010, which state government was prevented from operating Shariah-based Venture Capital Fund (VCF) by the High Court after a public interest litigation pointed out that such an Islamic financial entity was against the tenets of secularism?

The Kerala High Court on January 5, 2009 prevented the state government from operating Shariah-based venture capital fund (VCF). A public interest litigation had pointed out that such an Islamic financial entity was against the tenets of secularism. Government owned Kerala State Industrial Development Corporation (KSIDC) has 11 per cent stake in the venture fund registered as AI-Barka Financial Services. The logic behind the move, initiated by the KSIDC, was to open an investment avenue mainly for Muslim entrepreneurs who were reportedly averse to an interest-based system.