RBI’s move Regarding the Loan Write-off being twisted as Wavied-Off by Congress.
Rahul Gandhi’s attack on Centre over RBI’s list of 50 bank defaulters seems to have enraged Union finance ministry Nirmala Sitharaman, who in a series of late night tweets slammed the Congress leader for “misleading people in a brazen manner by sensationalising facts”. She even advised Gandhi to take consultation from former Prime Minister Manmohan Singh on issues related to finance.
“Rahul Gandhi, MP (LS), and Randeep Singh Surjewala, spokesperson of Congress, have attempted to mislead people in a brazen manner. Typical to Congress, they resort to sensationalising facts by taking them out of context,” Sitharaman tweeted around 11pm on Tuesday.
Gandhi had attacked the ruling BJP after the Reserve Bank of India (RBI) released a list of 50 wilful defaulters accused of cheating banks. These 50 defaulters included the companies of absconding diamantaire Mehul Choksi and fugitive businessman Vijay Mallya.
“I asked a simple question in Parliament — tell me the names of 50 biggest bank scammers. Finance Minister refused to reply. Now RBI has put names of Nirav Modi, Mehul Choksi and other BJP friends in the list. This is why they hid the truth from parliament,” the Congress MP had tweeted in Hindi along with a video.
Sitharaman countered that between 2009-10 and 2013-14, scheduled commercial banks had written off Rs 1,45,226 crore.
She said provisions are made for Non-Performing Assets according to a 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 wrote.
Those defaulters, who do not repay despite having the 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’,” Ms Sitharaman wrote.
The finance minister then went into the cases of Nirav Modi, Mehul Choksi and Vijay Mallya
Nirav Modi Case : 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.
Nirmala Sitharaman✔@nsitharaman
Mehul Choksi Case : 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.
Sitharaman said it was the Prime Minister Narendra Modi-led government which was pursuing these wilful defaulters.
“9,967 recovery suits, 3,515 FIRs, invoking Fugitive Amendment Act in cases are on now. Total value of attachment and seizures in the cases of Nirav Modi, Mehul Choksi and Vijay Mallya: Rs 18,332.7 crore,” she said.