President Kovind on PNB fraud: Honest taxpayers bear brunt of loan default

“The innocent citizen loses out and ultimately the honest taxpayer bears the burden,” said, President Ram Nath Kovind. (Express photo by Partha Paul/File)

In his first remarks on the PNB fraud more than two months after Diamantaire Nirav Modi fled the country, President Ram Nath Kovind on Thursday said that when a wilful and criminal default on a bank loan happens, the innocent citizen loses out, and ultimately the honest taxpayer bears the burden.

“Genuine business failures can happen. But, when there is a wilful and criminal default on a bank loan, then it is families of our fellows Indians that suffer. The innocent citizen loses out and ultimately the honest taxpayer bears the burden. It is admirable that at the grassroots of our country — in small hamlets and among traditionally underprivileged and deprived communities — MUDRA entrepreneurs are striving to pay back their loans. These are hardworking Indians, many of them women. They are borrowing small sums as capital to set up little businesses. They are building their dreams. I would say they are building India’s dreams,” he said.

Kovind was speaking at the 34th annual session of FICCI Ladies Organisation (FLO) — an event where ironically ICICI Bank CEO Chanda Kochhar, who is facing allegations of financial irregularities and conflict of interest — was supposed to to have been one of the 10 women who were to be given the FLO Icon awards. Kochhar skipped the event.

The President said that women constitute half of the country’s population and contribute to the economy at work and at home. Yet, when it comes to business and commerce, it is regrettable that women have not been given their due, he said.

He added that the government has taken decisive steps to promote a culture of enterprise among ordinary citizens, especially women. “No doubt progress has been made. My attention was drawn to a study that says that the number of women CEOs and MDs has risen to over 20 per cent. A decade ago, this number was just around 10 per cent,” he said.