The Congress on Sunday demanded a White Paper on insolvency cases resolved through the Insolvency and Bankruptcy Board of India after accusing the BJP-led government of protecting promoters of companies declaring insolvency through the aegis of the board in a way that institutionalised corruption.
Addressing a presser, senior Congress leader Sanjay Nirupam and party spokesperson Pawan Khera said that in the last five years, 4,946 insolvency cases came up in which 457 cases got resolved.
‘Preferential transactions’
Giving an example of protection to promoters at insolvency proceedings, Mr. Nirupam said, “The Amtech group of companies took a loan of ₹21,000 crore from Indian banks. And then it was put on sale for ₹4,100 crore. Where did the money of the banks go? This way our banks are being bankrupt, which is our money. There have been reports that Amtech conducted preferential transactions, transactions defrauding creditors. But the government is not taking any action against the promoters.”
He also cited the examples of Alok Industries and Videocon, stating that the government should question the businessmen on how their operations went kaput, after they had started their companies from the ground up. “Actually, these companies have diverted the money and now with the companies sold, the promoters are roaming around scot-free,” he said.
Mr. Pawan Khera said in the name of resolving the insolvency cases of the companies, institutional corruption was going on.
“Nirmala Sitharaman ji always says these companies took loans during the time of the UPA. True, but taking a loan is not a crime. Diverting those funds is and that is happening under the Modi government,” Mr. Nirupam said.
