IL&FS crisis: Rahul alleges public money being used to bail out group
NEW DELHI: The Congress on Sunday stepped up its attack on the Central government, with party President Rahul Gandhi alleging that public money was being used to bail-out the debtridden IL&FS group.
In a tweet, Rahul alleged that Prime Minister Narendra Modi is bailing out the IL&FS group which has a long-term debt liability of around Rs 91,000 crore via public savings in LIC and the State Bank of India (SBI).
The tweet in Hindi titled “Lights, Camera, Scam”, alleges that in 2007 when Modi was the Gujarat chief minister, IL&FS was given the ‘GIFT CITY’ project worth Rs 70,000 crore. Till date no work has been achieved under the plan.
Rahul adds that in 2018, Modi was bailing out the same company via LIC an SBI.
Recently, the Congress has raised the issue and warned of “an impending ‘Lehman Brotherstype’ economic crisis facing the country”.
The IL&FS crisis has also dented equity investors confidence in the entire NBFC space.
Besides, the party has called for a forensic audit of the group over the disbursement of Rs 42,000 crore in the last four years.
Congress spokesman Manish Tiwari also tweeted on Sunday: “This is why IL&FS financials need to be forensically audited as management, principal shareholders and NDA/BJP government are unwilling to address the 42,000 crore question Peruse second Graphic minutely. Rs 42,000 crore was disbursed in past four years. Nobody knows where the money disappeared.”
The call for an audit comes at a time, when concerns have been raised regarding the financial stability of the group after some of its subsidiaries defaulted on commercial paper repayment obligations.
In addition, the party has said that public savings via LIC and SBI should not be used to bailout the private entity in which foreign institutions have a stake.