PM Modi blames Cong for bad loan mess

NEW DELHI: Prime Minister Narendra Modi on Saturday blamed ‘phone-a-loan’ scam of the previous UPA government for the bad loans in the banking sector and said every penny given at the behest of ‘namdars’ (dynasts) would be recovered.

Speaking at a function to

launch the payments bank of the postal department, he said a majority of bank funds during the previous regime were reserved only for rich who were close to a particu

lar family.

Against Rs 18 lakh crore

loans given since Independence to 2008, the figure rose to an astronomical Rs 52 lakh crore in six years after that, he said.

“Loans were given on phone calls made by ‘namdars’ (dynasts),” he said without taking anyone’s name.

Banks lent crores of rupees in contravention of rules to businessmen who were referred by the ‘namdars’, he alleged.

“Knowing fully well that

loans will not be paid back, banks lent money on orders of a family to a few,” he said adding the lenders were forced to restructure the debt when the borrowers defaulted.

He charged the previous UPA government of hiding the extent of NPAS.

Since coming to power in 2014, the NDA government has analysed the enormity of the situation and asked banks to recover dues strictly, he said.

During the last four years, all loans more than Rs 50 crore have been reviewed and ensured that terms are strictly complied with, he said.

Modi said 12 of the biggest loan defaulters have an outstanding of Rs 1.75 lakh crore. Another 27 have Rs 1

lakh crore. “We never gave any loans to any of the 12 big defaulters,” he said.