External Affairs Minister S.M. Krishna has said that corruption has affected growth and potential investors are hesitant to explore business opportunities in the State.

Mr. Krishna who was here to participate in a programme at Ganapathi Sachchidananda Ashram told presspersons on Saturday that the reputation of Bangalore was getting tarnished because of the increased corruption, lack of transparency in administration and the Government's instability.

“Stability and transparency are two major factors to attract investors. As both of them are at stake, they [investors] are thinking twice to make investments,” he said.

On the political developments in the State, Mr. Krishna said there was evidence of those in power being involved in scams. “I am disturbed by the developments,” he said.

Reacting to Chief Minister B.S. Yeddyurappa's allegation on the denotification of land during his [Mr. Krishna's] tenure as Chief Minister, the External Affairs Minister said the Congress government followed what he described as “rule of due process of law” and accorded top priority to transparency. People knew what work the Congress had done and what the others were doing, he said.

The denotification during his tenure, he added, was transparent, and when allegations were made the issue was discussed in the legislature.

To a question on the state of party in Karnataka, Mr. Krishna said the Congress, under the leadership of G. Parameshwara and Siddaramaiah was working effectively.

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