Modi govt gifts 74% haircut to Adani
Once again, the Union government is under scrutiny for favouring Adani! This time, the accusation is that Prime Minister Narendra Modi’s government misused bankruptcy laws to waive off loans worth approximately Rs 46,000 crore for 10 struggling companies of the Adani Group. These companies were acquired by Gautam Adani.
In the light of this settlement, bank employees’ unions have started protests and the Opposition parties have also criticised the government.
According to All India Bank Employees’ Association (AIBEA), public sector banks settled dues worth Rs 61,832 crore for just Rs 15,977 crore for these 10 companies, which were unable to repay their loans and had therefore become bankrupt.
In other words, Rs 45,865 crore was waived off and the employees’ union claims that the loan waivers the bankrupt companies received ranged from 42 to as much as 96 per cent. Interestingly, all this happened only after the Adani Group took over these companies.
Congress General Secretary Jairam Ramesh posted on the issue on X, saying that the AIBEA revealed, using publicly available data, how public sector banks forgave around Rs 62,000 crore in dues from 10 financially distressed companies in exchange for just Rs 16,000 crore. In economic terms, this is called a “74% haircut”.
AIBEA President Rajen Nagar accused the Modi government of helping the Adani Group in every possible way, including using bankruptcy laws, and thus, forcing public sector banks to bear the losses.
