Former Finance Minister P Chidambaram slammed Prime Minister Narendra Modi for his remarks about bad loans generated during UPA rule.
Reacting to the PM’s remarks during the launch of the India Post Payments Bank (IPPB) on Saturday, the Congress leader asked the Modi government to disclose loans given during the NDA rule that turned into Non-performing assets (NPA).
“Let’s assume that PM is right when he says that loans given under UPA have turned bad. How many of those loans were renewed or rolled over (that is ‘evergreened’) under NDA?” Chidambaram asked on Twitter.
Let’s assume that PM is right when he says that loans given under UPA have turned bad. How many of those loans were renewed or rolled over (that is ‘evergreened’) under NDA?
— P. Chidambaram (@PChidambaram_IN) September 2, 2018
“The real test is, will the NDA-2 match the record of UPA-2 and that of UPA-1. Let’s assume that PM is right when he says that loans given under UPA have turned bad. How many of those loans were renewed or rolled over (that is ‘evergreened’) under NDA?” Chidambaram wrote.
The real test is, will the NDA-2 match the record of UPA-2 and that of UPA-1.
— P. Chidambaram (@PChidambaram_IN) September 2, 2018
“Why were those loans not recalled? Why were those loans evergreened? How many loans and how much that were given after May 2014 have become non-performing assets? This question was asked in Parliament but there is no answer so far,” the senior Congress leader asked.
How many loans and how much that were given after May 2014 have become non-performing assets?
— P. Chidambaram (@PChidambaram_IN) September 2, 2018
Chidambaram also thanked Principal Economic Adviser Sanjeev Sanyal for endorsing his view that the Q1 GDP growth of 8.2 per cent is largely due to the low base effect (5.6).
“Thank you for also agreeing that, going forward, the base effect will not be so favourable and the growth rate will slow down. Let me repeat, I am happy that the growth rate has quickened, but it is too early to celebrate,” he added.
On Saturday, the PM had accused the Congress-led UPA government of forcing banks to give loans to defaulters.
“From 1947 to 2008, all the banks of the country had extended just Rs 18 lakh crore in loans. But from 2008 to 2014 the banks extended Rs 52 lakh crore as loans,” said the PM during the launch of IPPB, which aims to bring postal banking at the doorstep of people living in rural areas.
Read More: PM Modi launches India Post Payments Bank, accuses UPA of forcing banks to give bad loans
“Even though bankers knew that loans extended by them to such borrowers will turn bad, they were forced to do so by the naamdars (dynasts). Those who kept defaulting were given fresh loans in name of loan restructuring,” Modi said.
The PM’s comment came amidst the multi-crore loan default cases involving absconding fugitive Nirav Modi and liquor baron Vijay Mallya.
“Swift action is being taken against 12 biggest defaulters who were given loans before 2014. I want to assure the country that none of these big loans was given by our government,” the PM said.
Modi accused the Congress of leaving the nation’s economy on a land mine.