AMN / NEW DELHI
Union Finance Minister Arun Jaitley today asserted that government has not waived any loans of corporates.
In a blog, Mr Jaitley said that over the last few days, a rumour is being propagated regarding waiver of loans of capitalists by banks.
He said, from 2008 to 2014, Public Sector Banks disbursed disproportionate sums of loans to several industries and public needs to ask the rumour mongers at whose behest or under whose pressure were such loans disbursed.
Finance Minister said, rumour mongers should also be asked that when these debtors delayed in repayment of their loans and interest thereon to Public Sector Banks, what decision was taken by the then Government.
Mr Jaitley said that rather than taking firm decision against debtors the then government relaxed the loan classification norms to keep defaulters as non-NPA account holders.
Mr Jaitley said, NDA government recognised this nexus and took firm decisions with regard to the defaulters. He said, Insolvency and Bankruptcy Code was enacted and by amending it, in respect of companies whose money was not returned to the banks.
The decision was also taken that the debtors concerned would not be allowed to participate in the business of such companies.
Finance Minister said, under the code, cases have been instituted in the National Company Law Tribunal for timebound recovery from 12 largest defaulters.
These defaulters account for non-performing assets totalling 1.75 lakh crore rupees. He said with the object of increase credit off-take and creation of jobs, government has taken the big decision of capitalising state-owned banks.
Mr Jaitley said, NPA-hit banks will become stronger with 2.11 lakh crore rupees capital infusion.