Congress has blamed Modi Government for failing to prevent banking frauds. Manish Tiwari alleged that these ‘frauds are tumbling out of closet faster than (you) can say Jack Robinson’. In addition to the complaints by PNB regarding fraud not estimated at 2.7 Billion dollars, reports from Kanpur suggest that Rotomac staionary owner Kothari too has vanished with over 500 Crore of unpid bank loans.
Mr Tiwari also questioned the overall health of Banking sector in India. Total NPA amount of the Banking sector was 130 Billion Dollars as of 30 Sep 2017. 77% of these NPAs are leading Indian corporate houses who owe this money to depositors. India is ranking 6th, behind Portugal, Italy, Ireland greece and Spain in terms of loans not returned to banks. While each of these PIIGS country had a economic meltdown post 2008 crash, the situation was nowhere that bad in India. Its ironical that PNB had won 2016-17 National Vigilance award when the biggest banking fraud brewed undetected.
While genuine NPAs can be called a misdirected business decision, the same cannot be said about the willful frauds by the greedy corporate. Mr Tiwari alleged that this amount itself is above 9.5 Billion dollars over the five years. Of these five years Modi government has been for four years.
Manish Tiwari alleged that quite a few of these fraudsters were in regular touch with BJP’s leadership, taking Nirav Modi and Mehul Bhai as examples.
Congress has demanded a white paper on the health of Indian economy to be present during the budget session itself. The party further asked all banks to declare their NPA list. The part all demanded that a separate list of banking faults. Quite a few of these frauds are not in public domain and transparency would help the sector as a whole.