NPAs are big scam, says CPI(M)

CPI(M) today took on Finance Minister Arun Jaitley alleging he "misled" the Parliament and whole country on FCRA and NPAs and accused the government of practising "crony capitalism".
CPI(M) General Secretary Sitaram Yechury said the party will also move a resolution for constitution of JPC on demonetisation crisis as "prior information was with some people" before the announcement made by Prime Minister Narendra Modi on November 8.
Describing the NPAs as "big scam", he said "It has risen two times in the last two years and conviction of wilful defaulters have come down. The government is involved in crony capitalism."

Referring to yesterday's reply of Jaitley in the House, Yechury said "What Finance Minister said on NPAs was wrong. Finance Minister said that writing off debt is not writing off the loan as it still remains in the book and banks can make attempts to recover it."
He quoted "RBI guidelines" to prove Jaitley's observation on NPAs wrong and said there is a clear RBI guidelines on performing assets becoming NPAs.
Since there will be no incentives the banks will not go after loan recovery after writing off debts, Yechury said.

Yesterday, the CPI(M) leader said in the Rajya Sabha that SBI waived off Rs 7000 crore from their Non-Performing Assets (NPAs), of loans which are not being returned.

Intervening, Jaitley had said, "Written off does not mean waiver.... It does not mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes that is from being performing assets, it become a non-performing."
Attacking the government, Yechury said "In the last two years Rs 1,12,078 cr debt has been written off and they are saying they will still recover and pursue it."
He said the CPI(M) will move a resolution when the time will come for JPC.
On FCRA, he said "It was amended through Finance Bill in the 2016 budget which was wrong. Finance Minister misled Parliament and the whole country."

CPM leader Mohd Salim said,"There was a selective leak of demonetisation move and prior information was available with some people.