THE CONGRESS on Wednesday raised the crisis at Infrastructure Leasing and Financial Services (IL&FS), comparing it to the 2008 Lehman Brothers crisis in the US that triggered a global financial meltdown, and demanded a Supreme Court monitored multi-agency probe into the affairs of IL&FS.
It alleged that the government is putting pressure on government banks, institutions and insurers which have a stake in the entity to bail it out. “The Prime Minister’s Office, Finance Ministry are putting pressure on the Reserve Bank of India, the State Bank of India, the LIC of India and the NHAI to bail out this company. And the logical question is that why this is happening… because 35 per cent of this company is owned by foreign investors, mainly a Japanese Fund and a Abu Dhabi Fund… And the reason why it is happening is because they want to bail out the foreign investors,” Congress spokesperson Manish Tewari said at a press conference.
“So Indian tax payer’s money which is with the LIC, the common investors’ money which is with SBI and RBI… it is being utilised to save the money of foreign investors,” Tewari said.
Tewari said the IL&FS story is bigger than Vijay Mallya, Nirav Modi, Mehul Choksi all rolled into one.