In his latest attack on the Congress and its president Rahul Gandhi, Finance Minister Arun Jaitley accused the party of wanting to “sabotage India’s economy” and of “spreading disinformation about the government’s possible moves in relation to the private sector company IL&FS” that is struggling to pay its creditors.
“The Congress Party, for the last few days, has been busy spreading disinformation about the government’s possible moves in relation to the private sector company IL&FS. The Congress is a national saboteur. It wants to sabotage India’s economy by allowing a situation in relation to a company to persist, expand and become unmanageable. It lacks statesmanship and vision,” Jaitley wrote in his latest blog.
The attack was in response to Gandhi’s tweet accusing Prime Minister Narendra Modi of encouraging “crony capitalists.” In the tweet that used The Indian Express report that cited the RBI to say that PSBs had written-off bad loans over seven times the recovery amount in last four years. “Modi’s India- For Common Man: Notebandi-line up and put ur money in banks. All ur details into Aadhaar. U can’t use ur own money. For Crony capitalists: Notebandi-convert all ur black money to white. Let’s write off 3.16 lakh Cr using common man’s money,”he tweeted.
The government has decided to take over IL&FS as its debt defaults have led to a liquidity crisis.
Jaitley said several entities including LIC have invested heavily in IL&FS over the years. “Do I start calling all these investments today a scam as per the perverted Rahul Gandhi school of thinking?” the finance minister asked.
“The financial institutions’ investment in any company – ‘is it a scam’ as Rahul Gandhi and his coterie are spreading?”he asked. “Do I start calling all these investments today ‘a scam’ as per ‘the perverted Rahul Gandhi school of thinking?’ From where has he invented a proposal of Rs 91,000 crore investment likely to take place by LIC and SBI in the IL&FS? In fact, it is the section of the Congress leadership which has been urging me to enable investments in the IL&FS and save the company,” he said.
Reacting to the blog, Congress Monday alleged that Jaitley was desperate to “cover up government’s thievery” in the case.
In a tweet, Congress spokesperson Randeep Singh Surjewala said: “One more ‘Shirk Responsibility, Sell Family Silver, Save Cronies’ excuse by FM Jaitley, like in case of 4Ms – Mallya, Modi junior 1 and 2, Mehul Bhai…”
‘Bank write-offs regular exercise’
New Delhi: FM Arun Jaitley Monday said technical write-offs by banks do not lead to any loan waiver. “Writing-off of NPAs is a regular exercise conducted by banks to clean up their balance sheet, and achieving taxation efficiency. Writing off of loans is done, inter-alia, for tax benefit and capital optimisation. Borrowers of such written off loans continue to be liable for repayment,” he said.