‘Congress misleading people in a brazen manner’: Sitharaman rebuts Rahul’s claim

New Delhi, Apr 29: Finance Minister Nirmala Sitharaman has countered Congress leader Rahul Gandhi’s allegations on “wilful defaulters, bad loans and write-offs”, calling them an attempt to ‘mislead the people in a brazen manner” and sensationalise facts, typical to the principal opposition party.
In a series of tweets on Tuesday night, Ms Sitharaman said she wished that Mr Gandhi consulted former Prime Minister Manmohan Singh on what this writing-off was about.
‘Allegations Today’s attempt of Congress leaders is to mislead on wilful defaulters, bad loans & write-offs. Between 2009-10 & 2013-14, Scheduled Commercial Banks had written off Rs 145226.00 crores. Wished Rahul Gandhi consulted Dr Manmohan Singh on what this writing-off was about,’ she said in her tweet.
She said Mr Gandhi and Congress spokesperson Randeep Singh Surjewala have attempted to mislead people in a brazen manner. ‘Typical to Congress, they resort to sensationalising facts by taking them out of context. In the following tweets wish to respond to the issues raised.’
Congress and mr Gandhi should introspect why they fail to play a constructive role in cleaning up the system, she pointed out. ‘Neither while in power, nor while in the opposition has the Congress
shown any commitment or inclination to stop corruption & cronyism,’ she said in her missive.
Lashing out at the Narendra Modi government, the Congress on Tuesday said helping fugitives and waiving off their loans has become the main agenda of the BJP and demanded an answer from the Prime Minister.
‘On March 16, Mr Gandhi asked the Modi government in Parliament, names of 50 top bank scamsters in India. The government and Finance Minister kept mum and refused to disclose any names,’ said AICC communication in-charge Randeep Singh Surjewala has said addressing mediapersons via video conferencing.
The Congress’ response came after the news reports that the Reserve Bank of India has admitted to writing off Rs 68,607 crores due from 50 top wilful defaulters, including absconding diamantaire Mehul Choksi.
Ms Sitharaman said, ‘Earlier, on 18.11.2019, in the Lok Sabha for an unstarred Question no:52, a list of “Borrowers flagged as wilful defaulter by Public Sector Banks under CRILIC reporting as on 30.09.2019 (For borrowers with exposure of Rs 5 crore and above, Global operations) was provided.’
She maintained ‘Bank-wise details of aggregate funded amount outstanding and amount technically/prudentially written off, pertaining to top fifty wilful defaulters was provided as an annex to the answer to Lok Sabha starred question *305 of Rahul Gandhi on March 16.’
She insisted that it was the PMO of Narendra Modi government which is pursuing these wilful defaulters.
The Finance Minister said those defaulters who do not repay despite having capacity to pay, divert or siphon-off funds, or dispose of secured assets without bank’s permission are categorised as wilful defaulters. They are those well connected promoters who benefitted from UPA’s ‘Phone banking’, she pointed out.
‘Provisions are made for NPAs as per the four-year provisioning cycle laid down by the RBI. Upon full provisioning being done banks write-off the fully provided NPA but continue to pursue recovery against the borrower. No loan is waived off,’ she insisted.
‘9967 recovery suits, 3515 FIRs, invoking Fugitive Amendment Act in cases are on now. Total value of attachment & seizures in the cases of Nirav Modi, Mehul Choksi and Vijay Mallya : Rs 18332.7 Crore,’ according to her tweet.
In Vijay Mallya Case, Ms Sitharaman said total value at the time of attachment was Rs 8040 Crore and of seizure was Rs 1693 Crore. ‘Value of shares at the time of seizure was Rs 1693 Crore. Declared fugitive offender. On extradition request by GoI,UK High Court, has also ruled for extradition,’ she added.
In Mehul Choksi Case, the minister said ‘attachments of Rs 1936.95 Crore including foreign attachment of Rs 67.9 Crore. Seizure of Rs 597.75 Crore. Red Notice issued. Extradition Request sent to Antigua. Hearing for declaration of Mehul Choksi as Fugitive Offender is in progress.’
In Nirav Modi Case, she said ‘immovable and movable properties worth more than Rs 2387 Crore attached/seized. (Attachment Rs 1898 Crore and Seizure Rs 489.75 Crore) . This includes foreign attachments of Rs 961.47 Crore. Auction of luxury items for Rs 53.45 Crore. He is in prison in the UK.’
‘…while private sector banks were getting out. RBI could have raised more flags about the quality of lending…” RR Rajan.(Source: @IndiaToday Sept 11,2018 and many other print& electronic media). From 2015, PSBs were asked by GoI to check all NPAs >50 crore for wilful default
‘Useful to recall the words of Shri Raghuram Rajan: ‘A large number of bad loans originated in the period 2006-2008…Too many loans were made to well-connected promoters who have a history of defaulting on their loans…Public sector bankers continued financing promoters even’…,’ Ms Sitharaman said.
UNI