Recently, Rahul Gandi a Congress leader has highlighted an RTI query regarding the list of top 50 economy defaulters given by RBI. Upon which the Finance minister, Nirmala Sitharaman says that Rahul is misleading people.
Sitharam further accused the Congress leader of taking facts out of context. She further said that the Congress party has never contributed to stopping the corruption neither in opposition nor as a ruling party.
He further advised the Congress leader, Rahul Gandhi, to introspect for their failure as a constructive party for cleaning the system.
Sitharam clarified the RBI query saying that “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. 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 categorized as wilful defaulters.”
The Finance Minister also quoted former RBI Governor Raghuram Rajan’s comments to India Today and said: “Useful to recall the words of Raghuram Rajan: ‘A large number of bad loans originated in the period 2006-2008. Too many loans were given to well-connected promoters who have a history of defaulting on their loans. Public sector bankers continued financing promoters even while private sector banks were getting out. RBI could have raised more flags about the quality of lending.”
Centre has asked public sector banks, for 2015 onwards, to see all NPA (Non-Performing Assets) which are of Rs. 50 Crore or more, and identify them as wilful defaulters, said Sitharaman.
Ashok Gehlot, Chief Minister of Rajasthan has said that he was shocked over banks writing-off the loans of defaulters. Congress party’s senior leader, Rahul Gandhi has also accused Nirmala Sitharaman of denying, to answer his question on defaulters in the parliament.
The query filed in RTI had a clear response from RBI, admitting that it had written-off loans amounting to Rs 68,607 crore of 50 wilful defaulters, including firms of absconding diamond trader Mehul Choksi.
According to a document received under the Right To Information Act by activist Sakte Gokhale, Mehul Choksi’s firm Geetanjali Gems topped the list with Rs 5,492 crore in bad loans.
The list also included Vikram Kothari’s Rotomac Global Private Limited and Vijay Mallya’s Kingfisher Airlines Limited as wilful defaulters.