IndiaTomorrow.net,
New Delhi, Oct 15: The Communist Party of India (Marxist) on Saturday again lambasted the Narendra Modi government for creating a ‘bad’ bank to park the huge unpaid bank loans of corporates. In a video statement today, CPI-M General Secretary Sitaram Yechury termed the move as a ‘huge scam ten times bigger than the 2G scam.”
“Something to the tune of more than Rs 11 lakh crores has been borrowed by the Indian corporates mostly from our nationalized banks which they are not paying back. This is a scam which is about 10 times bigger than the 2G scam,” said Yechury.
He criticized the government for not making efforts to recover those loans.
“Instead of recovering these loans, the government is planning to create a bad bank where all these loans would be transferred and thereby restructured the other banks so that they can again start lending and lending to whom? The same corporates again. So this is a very very huge scam that is happening,” he said.
The government says it has not enough resources to waive farmers’ loan, said Yechury, but it has waived over one lakh crore rupees of corporate loans.
Resolving the crisis of ₹11 lakh crore of unpaid bank loans has to start with recovery, not by waivers and write-offs. #NPAs #NoBailOut pic.twitter.com/U1GevRmoQh
— Sitaram Yechury (@SitaramYechury) October 15, 2016
“Already the government has announced in the parliament that they have waived the nonperforming assets to the tune of Rs 1.12 lakh crores which were due from major corporates of our country. Now when you ask for a waiver of loans of the farmers who are committing distressed suicides because of the debt burden, that is not being done saying the government does not have enough resources. But you can waive to this extent to the big corporates of our country. That is the real character of this government,” said Yechury.
He said that corporate loans should be recovered first because it is people’s money.
“First you have to recover these loans and then restructure through recapitalization of your banks. Remember all this is people’s money. People savings in the banks have been misappropriated in this fashion. This is a big scam,” he said.
Last week, Yechury had also written a letter to Prime Minister Narendra Modi opposing the move to create a bad bank.
“The need of the hour is for your government to put into practice an urgent plan to start recovery of pending loans from top 100 borrowers. You must begin by making public their names with the due amount. A failure to do so would mean that your government is making our working people pay for the criminality of the rich defaulters,” he had written in the letter.
