Essar Steel becomes the 1st company to come around & say it wants to settle its 54,000 cr NPA loan to banks taken between UPA period of 2004-14.
– Amount is 6 times of Vijay Mallya’s default.
– Amount is 8 times of Nirav Modi’s default.
– Amount equal to entire Rafale deal.
– All given under UPA era.
Big victory for Modi and his Insolvency & Bankruptcy code (IBC)
– IBC would do to corporate lending what CIBIL did to retail lending .
– IBC insolvency is as big a reform as GST.
Media will not show such developments in their primetime debates coz appeasing INC which gave NPA worth 54 lakh crore is important than doing justice to Modi who is yielding results despite facing odds.
IBC is a great success.
To loot the banks the UPA government had disbursed 47 lac crores between 2007 to 13.
This figure looks stunning if you know that only 19 lac crores was disbursed by banks from 1947 to 2006.
It was specifically mentioned by the PM recently. He calls it “phone banking”.
Congress was taking a 6% fee for arranging such loans