Senior Congress leader P Chidambaram on Wednesday asked the government to explain 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.
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 till September 2019.
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".
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"This rule can be applied to other categories of defaulters, but why is it being applied to fugitives," he asked. "Why does she take shelter behind the technical rule," he said hitting out at Sitharaman.
One can technically write off loans of defaulters, willful defaulters and willful defaulters who stay back and try to face an enquiry, but why do they have to apply that rule to a willful defaulter who has fled India and the government has declared him a fugitive, he said.
"Why does this rule apply to Nirav Modis, Vijaya Mallyas and Mehul Choksis? They have been declared fugitives. That's why we questioned the bonafides of this government," he said.
Asked whether these loans were recoverable, the Congress leader said he did not know whether they were recoverable or not as it would depend on whether these fugitives have assets in India or abroad.
"Those are questions which the government must answer," he said.
Attacking the finance minister, Chidambaram said, "Why was she silent for the last 37 days and has now suddenly sprung to life and sprung to the defence of these fugitives. Is it not a little surprising and ironic."
"Why is Modi govt writing off bank loans of absconders & fraudsters like Nirav Modi+Mehul Choksi (Rs 8,048 CR), Jatin Mehta (Rs 6,038 cr), Mallya (Rs 1,943 cr) & others as per RBI's RTI reply of 24/4/2020?