“National Saboteur” Cong Behind IL&FS Debt Crisis: Arun Jaitley

Congress hit back alleging that the finance minister was desperate to “cover up government’s thievery” in the case.

Finance Minister Arun Jaitley wrote a blog to question the Congress’s stand on IL&FS.

(Photo: Altered by Eshwar Gole/The Quint)

The Congress, on Monday 1 October, hit back at Arun Jaitley for attacking its chief Rahul Gandhi over the IL&FS issue, alleging that the finance minister was desperate to "cover up government's thievery" in the case.

Congress a National Saboteur: Arun Jaitley

The rebuttal came after Finance Minister Arun Jaitley on 1 October, termed the Congress a "national saboteur" trying to spread disinformation about the developments in debt-ridden IL&FS.

Jaitley in a Facebook post titled 'Lessons for Rahul Gandhi from his partyman' said it must be remembered that the days of crony capitalism are over and the NDA government deals with challenges objectively and professionally.

He said that the party wants to sabotage India’s economy by allowing a situation in relation to a company to persist, expand and become unmanageable. He added that the Congress lacks statesmanship and vision.

Calling Rahul Gandhi's allegations false, Jaitley asked if the financial institutions' investment in any company is a scam?

Was it a scam in 1987 when the IL&FS was promoted with the Central Bank of India having 50.5% shares and the UTI having 30.5% shares? Was it a scam in 2005 when LIC acquired 15% stake in IL&FS and in March, 2006 when it acquired another 11.10% stake in the IL&FS? In fact, LIC further bought 19.34 lakh shares in IL&FS in 2010. Do I start calling all these investments today ‘a scam’ as per ‘the perverted Rahul Gandhi school of thinking?’

Arun Jaitley, Finance Minister

The finance minister, in his post, asked, “From where has he invented a proposal of Rs.91,000 crores investment likely to take place by LIC and SBI in the IL&FS?”

Get Words of Wisdom From Prof KV Thomas: Jaitley to Rahul Gandhi

Jaitley noted that it was in fact a section of the Congress leadership which has been urging him to enable investments in the IL&FS and save the company. Enclosing copies of letters from senior Congress leader Prof KV Thomas, Jaitley wrote, “A senior congress leader, Prof. K.V. Thomas, who is a former Union Minister and has been the Chairman of the Public Accounts Committee, has written to me on 20th September, 2018 making such a request.”

(Photo Courtesy: Facebook/Arun Jaitley)

(Photo Courtesy: Facebook/Arun Jaitley)

“This letter demolishes every word that Rahul Gandhi and his coterie has been spreading. It may be advisable for Rahul Gandhi to get some ‘words of wisdom’ from Prof. KV Thomas. The Congress Party must remember that ‘the days of crony capitalism are over.’ The NDA Government deals with such challenges objectively and professionally.”

FM Arun Jaitley

Jaitley, in another blog post, highlighted the differences between write-off and loan waivers today.

Congress Hits Back

In a tweet, Congress spokesperson Randeep Singh Surjewala alleged that the minister was trying to save the government in the IL&FS issue as he had done other cases.

"One more ‘Shirk Responsibility, Sell Family Silver, Save Cronies' excuse by FM Jaitley, like in case of 4Ms - Mallya, Modi junior 1 and 2, Mehul Bhai.

"An MP's a letter is not the law of land for FM to follow. Proves the desperation on FM's part to cover up Government's thievery," he said on Twitter with regard to the IL&FS issue.

Background

Congress President Rahul Gandhi on Sunday, 30 September, took to Twitter to attack Prime Minister Narendra Modi over the IL&FS controversy, saying that the government was bending rules and letting LIC use people’s hard-earned money.

Jaitley Defends Loan Write-Offs, Says They Don't Lead to Waiver

Jaitley, in another blog post on Monday, 1 October, defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the exercise helps lenders clean up their balance sheets and achieve taxation efficiency.

He said public sector banks have recovered Rs 36,551 crore of bad loans or NPAs during April-June quarter of the current financial year as compared to Rs 74,562 crore recoveries made in the full 2017-18 fiscal.

Commenting on reports that the country’s 21 state-owned banks wrote-off Rs 3.16 lakh crore of loans in four years of the BJP government and made recoveries of Rs 44,900 crore of written off loans, Jaitley in his post said “technical write-offs” are resorted to by banks as per the Reserve Bank of India (RBI) guidelines.

"This however does not lead to any loan waiver. Recovery of loans continues rigorously by banks," he said. "In fact the defaulting management of most insolvent companies have been removed under the Insolvency and Bankruptcy Code (IBC)."

Congress President Rahul Gandhi used the report to attack the government, saying demonetisation converted black money into white and Rs 3.16 lakh crore of loans were written off.

(With PTI inputs)