PM Modi blames UPA for bad loan mess in India
PM Narendra Modi today 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) will be recovered.
Speaking at a function, he said a majority of bank funds during the previous regime were reserved only for rich who were close to a particular family.
Modi blames UPA govt for bad loan mess
Loans were given on phone calls made by 'namdars': Modi
Against Rs. 18 lakh crore loans given since Independence to 2008, the figure rose to an astronomical Rs. 52 lakh crore in six years thereafter, Modi 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.
Modi charged UPA govt of hiding the extent of NPAs
"Knowing that loans won't be paid back, banks lent money on orders of a family to a few," Modi 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.
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Congress had put the economy on a landmine: Modi
Since coming to power in 2014, the NDA government has analyzed the enormity of the situation and asked banks to strictly recover dues, Modi said.
"Congress had put the economy on a landmine," he said.
During the last four years, all loans in excess of Rs. 50 crore have been reviewed and ensured that terms are strictly complied with, he said.
Never gave any loans to 12 big defaulters: Modi
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.