Robbing Poor To Benefit Rich Is Mantra Of Modi Govt: Cong On Loan Write-Offs

The Congress party has launched a scathing attack on the government, accusing it of distributing “freebies” amounting to a staggering Rs 12 lakh crore to its billionaire allies through loan write-offs over the past nine years. The party’s criticism centered around the government’s recent disclosure in the Rajya Sabha, revealing that public sector banks (PSBs) have written off an aggregate loan amount of Rs 12,08,828 crore from the financial year 2015-16 to the financial year 2024-25, based on provisional data.

On July 23, Mallikarjun Kharge, the Congress president, took to social media platform X to express his concerns, stating, “The Modi government has distributed ‘freebies’ worth 12 lakh crore to its billionaire friends through loan write-offs over the past nine years.” He emphasized the growing economic inequality in India, claiming that it is at its highest level in a century. Kharge further alleged that the government is squandering vast sums of money from public sector banks, saying, “Robbing the poor to benefit the rich is the core mantra of the Modi government’s economic policy!”

The Congress party’s accusations come in light of a written reply provided by Pankaj Chaudhary, the minister of state in the finance ministry, during a session in the Rajya Sabha. Chaudhary stated, “As per the Reserve Bank of India (RBI) data, public sector banks (PSBs) have written off an aggregate loan amount of Rs. 12,08,828 crore, from the financial year 2015-16 to financial year 2024-25 (provisional data).” This revelation has sparked outrage among opposition leaders, who argue that such write-offs disproportionately benefit wealthy individuals and corporations at the expense of the common citizen.

The minister clarified that banks write off non-performing assets (NPAs) in accordance with RBI guidelines and policies approved by the banks’ Boards. He explained, “Banks write off non-performing assets (NPAs), including, inter alia, those in respect of which full provisioning has been made on completion of four years.” However, he emphasized that these write-offs do not absolve borrowers of their liabilities. “Such write-off does not result in waiver of liabilities of borrowers and therefore, it does not benefit the borrower,” Chaudhary added.

Despite the government’s assurances, the Congress party remains skeptical about the implications of these loan write-offs. Kharge’s statements reflect a broader concern regarding the growing wealth gap in India, with many citizens feeling the brunt of economic policies that seem to favor the affluent. He pointed out that while the government claims to be working for the welfare of all, the reality appears starkly different. “Economic inequality in the country is at its peak in 100 years,” he asserted, highlighting the disconnect between the government’s narrative and the lived experiences of ordinary citizens.

The Congress party’s allegations underscore a significant political divide in India, with the opposition accusing the ruling party of prioritizing the interests of the wealthy over the needs of the poor. As the debate continues, the implications of these loan write-offs and the broader economic policies of the Modi government remain a contentious issue, with many citizens calling for greater accountability and transparency in financial dealings.

The Congress party’s accusations against the Modi government regarding loan write-offs have ignited a heated discussion about economic inequality and the distribution of wealth in India. As the opposition continues to challenge the government’s policies, the question of who truly benefits from these financial decisions looms large in the public discourse.