The Congress on Tuesday linked the Narendra Modi government’s decision to write off bank defaults worth Rs 68,607 crore to its pandemic-induced austerity measures, claiming that the administration had money for fraudsters, not citizens and soldiers.
The Reserve Bank of India has revealed that banks have “technically” written off Rs 68,607 crore in outstanding loans to top 50 wilful defaulters till September 30, 2019.
Drawing attention to the RBI’s response to an RTI query seeking a list of bank defaulters, Congress communications chief Randeep Surjewala said: “It is a shame that the government has written off Rs 68,607 crore of fraudsters at a time when the dearness allowances of military personnel and government employees have been frozen and every employee is being asked to contribute to the fight against the coronavirus crisis.
“The economy is in ruin, businesses have collapsed and massive job losses are being reported. But the government’s policy is to help people who looted banks.”
Although the RBI’s reply to the query filed by activist Saket Gokhale, giving a list of 50 defaulting companies, was dated April 24, it deals with defaults till September 30, 2019.
Asked how could the Congress claim that thousands of crores were waived off at a time when the country was struggling for every rupee because of the Covid-19 pandemic, Surjewala said: “The Modi government’s policy for defaulters is ‘dupe, deceive and depart. Let the updated list till today be released by the RBI and we will know how much amount has been written off. Why didn’t the government reveal the names of the defaulters when Rahul Gandhi asked for it on March 16, 2020?”
Former Congress president Rahul also weighed in, but did not stretch the issue to link it to the coronavirus crisis.
“I had asked a simple question in Parliament — tell me the names of 50 biggest bank thieves of our country. The Finance Minister (Nirmala Sitharaman) refused to answer. The RBI has now put the names of BJP’s friends including Mehul Choksi and Nirav Modi in the list of thieves. That’s why this truth was hidden in Parliament,” Rahul, the MP of Wayanad in Kerala, tweeted.
The contents of the RBI’s list are not new. The central bank had in reply to another RTI query on November 21, 2019, given a list of 30 top defaulters that included those mentioned in the latest list, including the companies of Nirav and Choksi. But the Congress has grabbed the opportunity to highlight the issue.
Surjewala said: “The government’s ‘Jan-Dhan-Gaban’ (loot of people’s money) scam lies exposed. The names of (Narendra) Modi’s friends — Nirav Modi and Mehul bhai — are at the top. So are Gujarat’s Jatin Mehta and Kingfisher owner Vijay Mallya.”
The Congress spokesperson added: “Will the Prime Minister tell the nation the reasons for this blessing for the thieves? He cannot remain silent now. He has to come out and answer. The country is fighting corona and you are helping frauds.
“Even C and D-grade employees have contributed from their salaries to the PM-CARES Fund. States are going around with begging bowls. Millions of migrant workers are walking miles in panic. The poor have nothing to eat. You have denied DA of Rs 1,000 to the soldiers. And you squander Rs 68,607 crore for the thieves?”
“We didn’t want to raise uncomfortable issues (in the middle of the Covid-19 crisis)…. But this is a classic case of hurting national interest. We were compelled to use harsh words. We can’t ignore such issues when the country’s resources are looted by the frauds and the government helps them. We hope the Prime Minister will finally hold a media conference and answer questions,” he said.
The RBI has in its reply stated that the information sought — on defaulters and loans written off till February 16, 2020 — is not available. Gokhale tweeted it is shocking that the RBI has not updated its records after September 30, 2019, the date till which data has been furnished.
The RBI has also said that information on overseas borrowers can’t be given under the RTI. The list contains names of firms, not individuals. The names of companies owned by Choksi — Gitanjali Gems — and Jatin Mehta’s Winsome Diamonds are at the top, with write-offs of over Rs 4,000 crore each.
The scandal involving Nirav and his uncle Choksi, whose escape from India dominated the public discourse for long during Narendra Modi’s first term, had caused unease to the government as both diamantaires had been sought to be linked to the Prime Minister.
While Nirav featured in a photograph of the Prime Minister with a delegation of businessmen much after cases had been filed against him, Choksi had attended an event at the Prime Minister’s official residence and Narendra Modi had been quoted as referring to him as “hamare Mehul bhai”.
