Non-performing assets (NPAs) have risen by 365% under the Narendra Modi government, the Congress alleged on Tuesday and questioned why “unbridled” powers are being given to public sector banks to sell off assets at “throwaway” prices.
“In last 5 yrs, NPA: Write offs: ₹10,09,510 Cr. Recovery: ₹1,32,000 Cr To top that NPAs have skyrocketed by a massive 365% under BJP regime. Govt is DESTROYING small & medium businesses and SQUANDERING people’s money for crony capitalists. NDA is India’s biggest NPA!” tweeted party president Mallikarjun Kharge, criticising the BJP-led National Democratic Alliance government.
Addressing a press conference, Supriya Shrinate, Congress spokesperson and head of the social media department, said 38 wilful defaulters had fled the country after swindling banks. What were the government’s plans to bring them back, she asked.
Ms. Shrinate said that in the last five years alone, the government had written off ₹10 lakh crore and only 13 per cent of that amount had been recovered. “The write-off is as good as a loan waiver,” she said.
She said 542 cases were resolved recently through the National Company Law Tribunal and the Insolvency and Bankruptcy Code and the amount of debt involved was ₹8 lakh crore but only ₹2 lakh crore was recovered. “If the common man fails to pay EMIs, they will be named and shamed and recoveries will be made, but it is astonishing that those who have defaulted in a big way have not been named so far. These amounts are being given away from the taxpayers’ money and that money is being used to absolve corporates of their liabilities,” Ms. Shrinate alleged.
“NPAs under the Modi government have gone up by 365% from ₹5 lakh crore between 2008 and 2014 and risen to over ₹18 lakh crore from 2014 to 2020,” she alleged. “Wilful defaulters have risen substantially and from ₹23,000 crore to ₹2.4 lakh crore and one wonders who are these people who are defaulting wilfully and are not being brought to book. Why are write-offs to the tune of over 10 lakh rupees and who are these corporates benefiting from it?”
Seeking answers from the government, the Congress spokesperson said: “The BJP or the Prime Minister never contests polls on issues or seeks votes on its report card as they never work. Every election is being contested on the personal background of the Prime Minister. But, who will answer why big haircuts are being given by banks.”