Technical loan write-off route should not be applied for fugitives: Chidambaram to govt

Senior Congress leader P Chidambaram on Wednesday asked the government why it had taken the technical loan write-off route for fugitives like Nirav Modi, Mehul Choksi and Vijay Mallya

Press Trust of India April 29, 2020 15:15:49 IST
Technical loan write-off route should not be applied for fugitives: Chidambaram to govt

New Delhi: Senior Congress leader P Chidambaram on Wednesday asked the government why it had taken the technical loan write-off route for fugitives like Nirav Modi, Mehul Choksi and Vijay Mallya.

His remarks came after Finance Minister Nirmala Sitharaman said that wilful defaulters were beneficiaries of 'phone banking' under the UPA regime and the Modi government is chasing them to recover the dues.

Technical loan writeoff route should not be applied for fugitives Chidambaram to govt

File image of P Chidambaram. PTI

She was responding to the opposition party's allegations of loan waiver worth Rs 68,607 crore in the form of write-offs to the top 50 wilful defaulters during the first half of the financial year ended March 2020.

Click here to follow LIVE news and updates on stock markets

Chidambaram said one cannot deny the rule that banks can write-off loans technically and recoveries can continue against wilful defaulters, but why was the rule applied to fugitives, who fled the country, after committing frauds.

"One is not denying such a rule that can be applied to a wilful defaulter. But, we are asking these are fugitives and they have left the country and are absconding. Why are you applying this rule to Nirav Modi, Mehul Choksi and Vijay Mallya," he said at press conference conducted through video conferencing.

The former finance minister said "when they are fugitives, the technical rule in the book should not be applied to them. That is my view".

Updated Date:

also read

Farmers to likely to call off agitation after Centre accepts most demands; final decision today
India

Farmers to likely to call off agitation after Centre accepts most demands; final decision today

'Nearly all demands raised by us have been met. Letter from government with assurances on emands has been received. A consensus has been reached,' said farmer leader Kulwant Singh Sandhu after a meeting of the Samyukta Kisan Morcha

Sovereign Gold Bond Scheme available via RBI's retail direct portal; check details here
Business

Sovereign Gold Bond Scheme available via RBI's retail direct portal; check details here

Those interested can buy Sovereign Gold Bonds through various methods, including digitally. To buy the bonds online, investors can apply through the official websites of the listed scheduled commercial banks

Banks to remain shut for 12 days in December; check complete list here
Business

Banks to remain shut for 12 days in December; check complete list here

People should note that many of these holidays are state-wise holidays, meaning that banks will remain closed in only certain parts of the country