No-holds-barred attack on Cong
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.