No-holds-barred at­tack on Cong

Financial Chronicle - - FRONT PAGE - FC BUREAU

UNION tex­tiles min­is­ter Sm­riti Irani brought out the heavy ar­tillery to at­tack the Congress lead­er­ship on the bur­geon­ing non-per­form­ing as­set prob­lem in what is a legacy is­sue which por­tends to threaten the very fab­ric of the fi­nan­cial sys­tem in In­dia. With Raghu­ram Ra­jan in his note to the par­lia­men­tary panel stat­ing un­equiv­o­cally that he sent a list of high pro­file fraud cases to the Prime Min­is­ter's Of­fice but was not aware of any progress on it, he has opened a fresh can of worms on In­dia's NPA prob­lem - The RBI set up a fraud mon­i­tor­ing cell when I was gov­er­nor to co­or­di­nate the early re­port­ing of fraud cases to the in­ves­tiga­tive agen­cies.

“UPA chair­per­son So­nia Gandhi led a gov­ern­ment that at­tacked the very core of the In­dian bank­ing sys­tem .... Why did Dr Man­mo­han Singh leave the In­dian fi­nan­cial sys­tem so pre­car­i­ously poised? I am sure we will not get an answer from the ever silent former PM?” —SM­RITI IRANI TEX­TILES MIN­IS­TER

Ialso sent list of high pro­file cases to the PMO urg­ing that we co­or­di­nate ac­tion to bring at least one or two to book. I am not aware of any progress on this front. This is a mat­ter that should be ad­dressed with ur­gency (it is not clear which pe­riod he is re­fer­ring to here - UPA or BJP, since he served both masters.) Irani talk­ing to Fi­nan­cial Chron­i­cle pre­sented the gov­ern­ment view on Ra­jan’s de­mo­li­tion job of the UPA - Raghu­ram Ra­jan’s state­ment clearly proves that it is Congress who is re­spon­si­ble for in­creased NPA. Rahul Gandhi, Priyanka Gandhi Vadra and So­nia Gandhi wanted to sab­o­tage the tax­payer’s money, “UPA chair­per­son So­nia Gandhi led gov­ern­ment that at­tacked the very core of the In­dian bank­ing sys­tem. Raghu­ram Ra­jan said that be­tween 2006-08, the UPA func­tion­ing led to in­creased NPAs in In­dia’s bank­ing struc­ture.”

In very strong lan­guage, she was crit­i­cal of the UPA years vis-a-vis bad loans which led to In­dia's twin bal­ance sheet prob­lem man­i­fest­ing it­self so acutely that it has im­per­iled the bank­ing sys­tem, "The truth of what tran­spired dur­ing the UPA years in the re­cent ad­mis­sion made by Raghu­ram Ra­jan has proved con­clu­sively what kind of jig­gery pok­ery took place in the por­ous bank­ing sys­tem. The fact that dis­pro­por­tion­ate non-pro­duc­tive as­sets re­ceived ever green­ing fa­cil­i­ties re­flects ba­sic thrust of eco­nomic poli­cies of UPA where fudg­ing numbers, do­ing noth­ing on bank­ing re­forms threw open chal­lenges for the fu­ture eco­nomic prospects in the form of NPAs."

One of the rea­sons why the in­vest­ment cy­cle has not re­vived is the twin bal­ance sheet prob­lem where not only are the banks stressed with bad loans but cor­po­rate firms are en­cum­bered with high debt. Ag­gres­sively launch­ing into the Congress-led UPA, she said – “The rem­nants of the Ra­jan de­po­si­tion be­fore the par­lia­men­tary com­mit­tee leaves many unan­swered ques­tions in its wake - why was the coun­try mis­led in­stead of Rs 2.5 lakh crore NPAs, a chal­lenge of Rs 8.5 lakh crore was left be­hind for us to han­dle so much so that we had to deal with the baby and the dirty bath­wa­ter. Why did Dr Man­mo­han Singh leave the In­dian fi­nan­cial sys­tem so pre­car­i­ously poised? I am sure we will not get an answer from the ever silent former PM?"

"UPA chair­per­son So­nia Gandhi led a gov­ern­ment that at­tacked the very core of the In­dian bank­ing sys­tem. Raghu­ram Ra­jan has said that be­tween 200608, the UPA func­tion­ing led to in­creased NPAs in the In­dian bank­ing struc­ture," she said. Irani termed Ra­jan's re­port a "loud procla­ma­tion" of cor­rup­tion done by Congress. "A va­ri­ety of gov­er­nance prob­lems such as the sus­pect al­lo­ca­tion of coal mines cou­pled with the fear of in­ves­ti­ga­tion slowed down gov­ern­ment de­ci­sion mak­ing in Delhi, both in the UPA and the sub­se­quent NDA govern­ments," Ra­jan has said in a note to the par­lia­men­tary panel.

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