Congress president Rahul Gandhi on Sunday asked Prime Minister Narendra Modi why he was risking people’s hard-earned money by getting Life Corporation of India (LIC) to bail out “fraudsters”, lining up another issue to embarrass the government after the Rafale deal.
Congress leaders claim the crisis at Infrastructure Leasing & Financial Services (IL&FS) would be a critical factor in assessing the government’s perceived bungling in the financial sector.
Infrastructure lending major IL&FS has piled up Rs 91,000 crore in debt. It recently defaulted on some debt payments, triggering panic in the stock market and prompting comparisons with the Lehman Brothers bankruptcy that had perpetrated a global meltdown.
LIC, a principal investor in the company, is believed to have agreed to subscribe to a proposed Rs 4,500 crore rights issue as part of the turnaround strategy.
The Congress had on Saturday demanded a probe into the alleged role of Narendra Modi in “gifting” the GIFT City project as Gujarat chief minister to the infrastructure lending company. The party alleged that after the project’s failure, SBI and LIC “are being used to pump in money to save IL&FS”.
After the Congress sought a probe by a special investigation team under the surveillance of the Supreme Court, Rahul targeted the Prime Minister in a tweet on Sunday: “Modi ji, your favourite private company IL&FS is about to sink. Why do you want to use LIC funds to save this company?
“LIC is a symbol of trust in the country. People take LIC policy by saving every single rupee they earn. Why are you protecting fraudsters using their money? Does IL&FS mean to you — I Love Financial Scams?”
In another tweet, the Congress chief said: “Lights, Camera, Scam Scene 1: Gujarat CM Modi awards GIFT CITY project worth Rs 70,000 crore to IL&FS. So far, no work. Fraud comes to light. Scene 2: In 2018, PM Modi trying to bail out the IL&FS, struggling in Rs 91000 crore debt, with the people’s money parked in LIC & SBI. Chowkidar ki dadhi mein tinka.”
Rahul was playing on the proverb “chor ki dadhi mein tinka”, which means a thief always leaves behind evidence.
Rahul, who frequently refers to Modi’s pre-poll promise that he would be a “chowkidar (sentinel)” of India’s resources, had kicked up a political storm by saying “chowkidar chor hai (the sentinel is a thief)” while questioning the Prime Minister’s role in the Rafale deal.
Although many Congressmen agree they don’t relish this kind of a discourse, they defend Rahul’s belligerence by recalling how Modi has abused and insulted Opposition leaders over the past four years.
A senior Congress leader said: “The BJP called Manmohan Singh chor in the coal scam. Slogans of ‘Indira Gandhi and Rajiv Gandhi chor hai’ have been raised by the Opposition in the past. And Modi crossed all limits by describing all those who opposed demonetisation as dishonest and thief.
“We certainly would have avoided getting sucked into this lowly discourse but the government chose to paint the Congress black in response to genuine questions asked by us on Rafale.”
The BJP has hit back at Rahul through the social media campaign #RahulKaPuraKhandanChor.
The fight is bound to get bitter as the Congress has turned Rafale into a mass campaign and also linked Modi to the IL&FS crisis.
Mounting pressure on the government, Congress spokesperson Manish Tewari tweeted a detailed chart on the IL&FS’s finances, saying: “This is why IL&FS financials need to be forensically audited as Management, Principal shareholders & NDA/BJP Government are unwilling to address the Rs 42,000 crore question. Rs 42,000 crore was disbursed in past four years. Nobody knows where the money disappeared.”
The IL&FS management has assured shareholders, saying the company will re-capitalise itself by selling assets, and that creditors will be repaid soon.