STOCK MARKET BSE NSE

Bank NPAs bigger scam than 2G: Yechury

Published: 15th October 2016 05:59 PM  |   Last Updated: 15th October 2016 05:59 PM   |  A+A-

Yechury-PTI
By IANS

NEW DELHI: Attacking the BJP-led Central government over loan waivers for corporates, CPI-M General Secretary Sitaram Yechury on Saturday said the unpaid loans owed by private companies to the nationalised banks was a scam "10 times bigger" than the 2G spectrum scandal.

"More than Rs 11 lakh crore has been borrowed by Indian corporates form nationalised banks which they did not repay. Not only the government did not do anything to recover them, but waived off Rs 1.12 lakh crore owed by the corporates in the last two years.

"It is a humongous scam. A scam 10 times bigger than the 2G spectrum," the Communist Party of India-Marxist leader said on social networking sites Twitter and Facebook.

"When you ask to waive off the loans of the farmers who are committing suicide due to distress, the government is unwilling to do so, saying it does not have enough resources, but (it) can waive off corporate loans to the extent of Rs 1.12 lakh crore."

According to him, this "reflects the real face of the Central government".

Yechury, who has been opposing the government proposal of creating a "bad bank", called for recovering the loans instead of restructuring the banks.

"The suggestion of creating a bad bank is a bad idea, as it lets big defaulters get away scot-free. You just cannot restructure the nationalised banks so that they are once again able to dole out loans to the corporates," said the leader who has written to Prime Minister Narendra Modi calling for "naming and shaming" the top 100 corporate loan defaulters and opposing the creation of a "bad bank".

"All this money which has been misappropriated in this fashion belongs to the public. Instead of creating a bad bank the government must take immediate steps to recover the loans from the corporates," added Yechury.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp