No loan waiver for capitalists: Jaitley

Source: The Hitavada      Date: 29 Nov 2017 08:55:44



FINANCE Minister Arun Jaitley on Tuesday denied that the Government had waived off bank loans of big capitalists and asserted that proceedings had been initiated against 12 largest defaulters for time-bound recovery of dues totalling Rs 175,000 crore. “Over the last few days, a rumour is being propagated regarding waiver of loans of capitalists by banks... Government has not waived any loans of big NPA defaulters,” he said in a blog post.

“On the contrary, under the new Insolvency and Bankruptcy Code, cases have been instituted in the National Company Law Tribunal for time-bound recovery from 12 largest defaulters in six to nine months (to the tune of) Rs 1,75,000 crore,” he said.

Arun Jaitley on Tuesday said the Government has been taking firm action against defaulters and is making efforts to make ‘mazboor’ banks ‘mazboot’ by recapitalising them.
“During 2010-11 to 2013-14 too, the Government provided banks an amount of Rs 44,000 crore for recapitalization. Was that also for waiving off loans of capitalists?”

The Minister accused the erstwhile UPA Government for the NPA crisis and said state-run banks disbursed disproportionate sums of loans to several industries between 2008 and 2014. “The public needs to ask the rumour mongers at whose behest or under whose pressure were such loans disbursed. They should also be asked that when these debtors delayed in repayment of their loans and interest thereon to PSBs, what decision was taken by the then Govt,” Jaitley said.