Rajya Sabha Debates: The Controversial Write-Off of Crores in Outstanding Loans

In the Rajya Sabha, opposition members accused the government of writing off Rs 87,000 crore owed by 50 wilful defaulters. The government claims that measures are in place to address the non-performing assets (NPAs) crisis, with significant recoveries made under the Insolvency and Bankruptcy Code.

Government actions have come under scrutiny in the Rajya Sabha as opposition parties voiced their concerns over the write-off of Rs 87,000 crore owed by wilful defaulters, including high-profile figures like Mehul Chokshi and Rishi Agarwal. MPs criticized the government's handling of non-performing assets (NPAs) and its impact on Indian banks.

Opponents argued that defaulters who fled the country were forgiven massive debts, while the impoverished and small business owners faced asset auctions for loan defaults. The discussion over the Banking Laws (Amendment) Bill also highlighted concerns about favoring power in auditor remuneration and subpar customer service in public sector banks.

While BJP representative Arun Singh countered that these loans were initially issued during the UPA regime and that efforts to recover the debt continue, the government pushed for transparency with the Insolvency and Bankruptcy Code, reporting recoveries exceeding 122.81% of fair asset value.

(With inputs from agencies.)