Poor get poorer
As always, given the inequities built into the global economic system, the poorest people in the world have been the…
Chief Minister Arvind Kejriwal, on Saturday wrote a letter to Prime Minister Narendra Modi opposing the proposed privatisation of the IDBI.
Kejriwal, in his letter wrote that the reasons given by the Union finance minister, to justify privatisation are fundamentally flawed.
"I request you to stop the privatisation of IDBI, let the banks recover dues from big industrialists and take strong action against people like (Vijay) Mallya," said Kejriwal in his letter.
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He further pointed out that the IDBI was set-up in accordance with the provisions of the Industrial Development Bank Act, 1964, and the IDBI during last five decades has played an important role in the industrial development of the country through its coordination with main financial institutions.
"The Non Performing Assets (NPAs) of the IDBI are mainly the dues recoverable from big industrial houses and the central government should allow this bank to strictly recover these dues in place of citing it as a reason to privatise it," stated Kejriwal.
He also mentioned that it is very unfortunate that the government, instead of acting strongly against people like Mallya, is letting them flee the country.
"There must be so many industrialists who have taken money from the banks. "The government, on one hand, is stopping the banks from recovering the money while it is selling their shares towards privatizing them," wrote Kejriwal.
Chief Minister stated that IDBI is a profit making public sector bank, and according to the bank’s financial statement, its operating profit before provisions and contingencies till December 2015 stands at Rs 1,117 crore, therefore it will be unjustified for the central government to reduce its stake below 51% in this bank.
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