NDA Shielding Promoters Of Defaulting Firms: Congress

New Delhi, March 27 : Congress on Sunday accused the NDA government of protecting the promoters of companies that were “wilful defaulters” and declaring insolvency through the Insolvency and Bankruptcy Board of India. Addressing a press conference here, party leader Sanjay Nirupam said that no action has been taken against any promoter of the companies so far and they have been given a clean chit by the board, despite huge losses to the banks. Citing the example of Amtek Group of Companies, Nirupam said, “The company took a loan of Rs 21,000 crore from the banks and then it was put on sale for Rs 4,100 crore. Where did the bank’s money go?” He further demanded a CBI inquiry into the matter and said money has been siphoned off, but the government has remained mum over the issue. “Corruption is still rampant in the NDA government and companies are siphoning off money from the banks in the name of Insolvency Bankruptcy Code,” he accused. He said in the past five years, many companies have become willful defaulters, they are deliberately diverting funds to their offshore companies, and no action has been taken by the government. Citing the examples of Alok Industries and Videocon, Nirupam said the government should ask these shrewd businessmen how their operations went kaput, while they started their companies from scratch. The Congress leader said, “The companies have diverted the money and now with the companies sold, the promoters are roaming around scot-free. “The Finance Minister always says that these companies took loans during the time of UPA government. True, but taking loan is not a crime. Diverting those funds is and that is what is happening under the Modi government,” he alleged. Sanjay also quoted the report of the Insolvency and Bankruptcy Board of India (IBBI). He said out of 4,946 cases of insolvency, only 457 have been resolved, in which Rs 8.3 lakh crore of bank money was involved. Only 2.6 lakh crore money has been retrieved from those companies that registered a loss of around Rs two lakh crore. He said the government should issue a white paper on these insolvency cases. The Congress leader also alleged that insolvency is a new route to legalising corruption in the country. In the name of resolving the insolvency cases of the companies, “institutional corruption is going on,” he said.

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