Congress misleads nation over loan cancellations: FM Nirmala Sitharaman
Stung by the opposition attack on the Reserve Bank of India, admitting that the banks had written off 68,607 crore in the debt of the top 50 voluntary defaulters until September 30, 2019, Finance Minister Nirmala Sitharaman said the Modi’s government was cleaning up the financial system, going after willful defaulters, and accused Congress of “making a splash” and being “cheeky” by misleading people on the subject.
“Congress and Rahul Gandhi should ask themselves why they fail to play a constructive role in cleaning up the system. Neither in power nor in opposition, Congress has shown any commitment or inclination to end corruption and cronyism, ”Sitharaman tweeted Tuesday evening.
“Rahul Gandhi and Randeep Surjewala (Congress Spokesman) have tried to brazenly mislead people. Today’s attempt by Congressional leaders is to mislead willful defaulters, bad debts and write-offs, ”Sitharaman said.
The RBI said Indian banks had canceled Rs 68,607 crore of debt from the top 50 voluntary defaults until September 30, 2019, in response to a request filed under the Right to Information Act (RTI). Write-offs are technical or prudential in nature, which means that banks have made 100% provisions on loans. However, this does not mean that the banks have given up the right to collect the loans. This also does not mean that the banks wrote off the entire loan, as some loans were taken against collateral, which may or have already been recovered.
The RTI was filed by Saket Gokhale, an activist, on March 19, and he received the list on April 24. It lists defaults until September 30 of last year, which means that either the RBI has not updated the list or other deliberate defaults above Rs. 5 crore have not occurred. in this period to update.
“Provisions are made for NPAs according to the four-year provisioning cycle established by the RBI. After full provisioning, banks cancel the fully provided NPA, but continue to pursue collection against the borrower. No loan is canceled. Defaulters who do not repay when they have the capacity to pay, embezzle or siphon funds, or dispose of collateralized assets without the authorization of the bank are classified as willful defaults, ”Sitharaman said.
Calling these voluntary defaulters well-connected promoters, who benefited from the UPA’s “phone banking”, Sitharaman said that during the UPA government’s second term, the banks had written off $ 1.4 trillion. rupees.
“It is the Narendra Modi government which pursues these voluntary defaulters. 9,967 recovery lawsuits, 3,515 FIR, invoking the Fugitive Amendment Act in cases are pending. The total value of foreclosures and seizures in the cases of Nirav Modi, Mehul Choksi and Vijay Mallya is Rs 18,332.7 crore, ”the finance minister tweeted.
According to the RBI’s response to the RTI, Mehul Choksi’s Gitanjali Gems tops the list with Rs.5,492 crore written off. The much publicized Kingfisher Airlines is in the top 10 list with a delisting of Rs 1,943 crore. Gitanjali is followed by REI Agro, with an exposure of Rs 4,314 crore, and Winsome Diamonds and Jewelery at Rs 4,076 crore.
Earlier today, Surjewala published the list of defaulters. Rahul Gandhi said he asked the government in parliament for the names of the top 50 bank loan defaults, but the finance minister did not answer his question. Now the RBI has distributed the list which includes Nirav Modi, Mehul Choksi and many “friends” of the BJP, he said.
“I asked Parliament a direct question – list the names of the top 50 defaulting bank debtors in the country. The finance minister refused to answer the question. Now the RBI has given the names of Nirav Modi, Mehul Choksi and many BJP friends’ in the bank fraud list. This is why this truth has been withheld from Parliament, “Gandhi said in a Hindi tweet.
However, Sitharaman said the government provided a written response to Gandhi’s question in parliament.