Thiruvananthapuram, June 24 -- Keralam Chief Minister VD Satheesan on Wednesday rejected allegations that his government acted in collusion with liquor company Bacardi while imposing taxes on low-alcohol beverages.

Addressing the Assembly during discussion on the state budget, Satheesan said that the process of creating and promoting the category had begun during the previous LDF government's tenure, headed by Pinarayi Vijayan.

He said that the Opposition was misrepresenting the controversy surrounding the taxation of low-alcohol beverages.

"We imposed a tax on low-alcohol beverages, and allegations were raised that the Chief Minister acted in collusion with Bacardi. Let me explain. The process actually began during the second Pinarayi...