A fiery debate erupted in the Rajya Sabha on Wednesday as opposition leaders accused the Modi government of writing off crores in loans of wilful defaulters, while leaving banks burdened with massive non-performing assets (NPAs). Congress leader Shaktisinh Gohil cited official data claiming that the government has written off ₹87,000 crore owed by 50 wilful defaulters, including controversial names like Mehul Chokshi and Rishi Agarwal. He questioned why these fugitives are given relief, while small traders and farmers face harsh recovery actions and auction of assets.
Echoing similar concerns, TMC’s Saket Gokhale slammed the government, stating that while common people are borrowing just to repay old loans, Indian banks are crumbling under a staggering ₹10 lakh crore in NPAs. Gokhale alleged that the problem is caused by a handful of influential defaulters who have defrauded the system and fled the country. He also accused the government of masking the crisis by asking banks to write off NPAs, making balance sheets look healthier without actual recoveries.
BJP’s Arun Singh countered the charges, blaming the UPA regime for distributing loans without due diligence, leading to the NPA mess. Singh defended the Modi government’s actions, highlighting the asset quality review initiated in 2015 and the implementation of the Insolvency and Bankruptcy Code in 2016, which, according to him, has resulted in recoveries of ₹3.4 lakh crore, equivalent to 122.81% of asset fair value.
DMK’s KRN Rajeshkumar warned that giving banks unchecked power over auditor remuneration could result in favoritism, while AAP’s Raghav Chadha pointed out how poor service at PSU banks continues to frustrate ordinary customers. The debate has intensified the spotlight on the government’s handling of big defaulters and the widening trust gap with ordinary borrowers.
