CPI demands action against economic offenders, recovery of bank loans from defaulters

CPI demands action against economic offenders, recovery of bank loans from defaulters

TMB Report

IMPHAL: CPI General Secretary D. Raja has expressed serious concerns on banks writing off loans worth Rs. 68,607 crore of defaulters and has demanded action against economic offenders and that the bank loans be recovered.

“It is a matter of serious concern that a few days ago, in reply to a question under RTI, the Reserve Bank of India has revealed 50 names of bank loan defaulters for whom a total amount of Rs. 68,607 crores has been written off as on 30th September, 2019,” the secretary of CPI, Central India stated in a press release. Though such write offs of huge amounts in favour of big corporates is a regular feature in the banks, the timing of the same is very distressing, he added.

At a time when the poor people of our country are facing innumerable problems on account of COVID-19 pandemic and are bearing the burden through loss of livelihood, at a time when lakhs of migrant workers and contract workers have lost their jobs and have overnight become virtual beggars, at a time when the government wants the government employees to sacrifice their dearness allowance and benefits to overcome the corona-related expenses, it is a matter of shame that under the very nose of the present BJP-NDA government, such huge loans have been written off to favour these willful defaulters, D. Raja stated.

CPI has been repeatedly pointing out that bad loans in the banks are alarmingly increasing year after year. CPI also consistently demanded that effective measures should be taken by the government to recover these loans, the General Secretary said.

“In 2004 (UPA-I) total bad loans were Rs. 51,500 crores.  In 2009 (UPA-II) it was Rs. 45,000 crores.  In 2009 (NDA-I) it was Rs. 2,16,000 crores and in 2019 (NDA-II) it has gone upto Rs. 7,40,000 crores. As per the written reply given in the Parliament, as on 31-3-2018, there were 9331 wilful defaulters who together owed Rs. 1,22,018 crores to the banks.  It will be much higher now,” D. Raja pointed out.

What is intriguing is that fugitive offenders like Vijay Mallya, Nirav Modi, Mehul Choksi, Vikram Kothari and many others who are facing criminal action are beneficiaries of the benevolence of the banks, RBI and the government, he said and questioned if they should be treated like other normal defaulters? 

They should be separately dealt with. Such concessions to them will only encourage more such tycoons to cheat the banks and flee the country, he said.

CPI demands tough action against these economic offenders and recover the dues, the general secretary of the CPI, Central India stated.

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