Act Against Economic Offenders and Recover Bank Loans: D. Raja
CPI General Secretary D. Raja issued the following statement today (on April 30, 2020) demanding action against economic offenders and recovery of bank loans:
It is a matter of serious concern that a few days ago, in reply to a question under RTI, the Reserve Bank of India has revealed 50 names of bank loan defaulters for whom a total amount of Rs. 68,607 crores has been written off as on 30th September, 2019. Though such write offs of huge amounts in favour of big corporates is a regular feature in the banks, the timing of the same is very distressing.
At a time when the poor people of our country are facing innumerable problems on account of COVID-19 pandemic and are bearing the burden through loss of livelihood, at a time when lakhs of migrant workers and contract workers have lost their jobs and have overnight become virtual beggars, at a time when the government wants the government employees to sacrifice their dearness allowance and benefits to overcome the corona-related expenses, it is a matter of shame that under the very nose of the present BJP-NDA government, such huge loans have been written off to favour these willful defaulters.
CPI has been repeatedly pointing out that bad loans in the banks are alarmingly increasing year after year. CPI also consistently demanding that effective measures should be taken by the government to recover these loans.
In 2004 (UPA-I) total bad loans were Rs. 51,500 crores. In 2009 (UPA-II) it was Rs. 45,000 crores. In 2014 (NDA-I) it was Rs. 2,16,000 crores and in 2019 (NDA-II) it has gone upto Rs. 7,40,000 crores. As per the written reply given in the Parliament, as on 31-3-2018, there were 9331 wilful defaulters who together owed Rs. 1,22,018 crores to the banks. It will be much higher now.
What is intriguing is that fugitive offenders like Vijay Mallya, Nirav Modi, Mehul Choksi, Vikram Kothari and many others who are facing criminal action are beneficiaries of the benevolence of the banks, RBI and the government. Should they be treated like other normal defaulters? They should be separately dealt with. Such concessions to them will only encourage more such tycoons to cheat the banks and flee the country.
CPI demands tough action against these economic offenders and recover the dues.