Leader of the Opposition in the Lok Sabha, Rahul Gandhi, launched a scathing attack on the Modi government on Thursday, alleging the creation of two distinct systems within the country. According to Gandhi, one system is designed exclusively for a handful of billionaires, while the other applies to the rest of the population. Targeting the National Company Law Tribunal (NCLT), Rahul Gandhi labeled it a Leader-Company Loot Tribunal. He pointed out a stark contrast in how financial institutions operate, noting that while banks and financial entities deal strictly with ordinary citizens, they exhibit extreme leniency toward specific industrialists.
The 22000 Crore Rupee Controversy
The primary trigger for this criticism was a recent settlement handled by the NCLT involving a massive default. Rahul Gandhi reacted to reports that a default loan amounting to 22000 crore rupees was settled for a mere 6 crore 50 lakh rupees. This settlement represents a staggering 99 point 97 percent waiver of the original debt. Gandhi described this as a complete loot of public money, questioning how such a massive amount of capital could be written off so easily while common people struggle with much smaller debts.
Dual Standards for Farmers and Salaried Class
In a post on the social media platform X, Rahul Gandhi highlighted the disparity in debt recovery processes. He stated that if a farmer is unable to repay a loan of even 50000 rupees, their land is promptly auctioned off by the authorities. Similarly, if a salaried individual misses even a single EMI payment, bank agents arrive at their doorstep to exert pressure, while he further noted that poor students often find it impossible to secure loans for their education. Gandhi argued that for certain special friends of the government, bank funds are treated like private property where they can withdraw as much as they want and repay as little as they choose.
The Concept of Haircut and Political Reaction
The term haircut in banking refers to the reduction in the value of an asset or the acceptance of a lower amount than what is owed. Congress General Secretary In-charge Communications, Jairam Ramesh, commented on this specific settlement, stating that it wasn't just a haircut but effectively a Mundan (shaving of the head). He argued that such practices make a complete mockery of the Insolvency and Bankruptcy Code, 2016. The Congress party has raised serious questions about the integrity of the NCLT process under the current administration.
Demand for Transparency and 12 Year Data
Congress General Secretary and Rajya Sabha MP Randeep Singh Surjewala joined the critique, demanding that the Union Finance Minister present data from the last 12 years. He called for a detailed account of how many lakh crore rupees have been lost through haircuts via the NCLT. Surjewala alleged that under the guise of haircuts, the Modi government is allowing the loot of public and bank money through the NCLT. He suggested that the total figure of such waivers could exceed 10 lakh crore rupees, clarifying that his statement was based on specific information rather than mere guesswork.
Questioning the Purpose of NCLT
Surjewala further questioned the logic behind extreme haircuts ranging from 50 percent to 99 percent. He asked why NCLT proceedings are even conducted if the ultimate goal is to provide such massive relief to big debtors. He characterized these actions as a method to waive the loans of industrialists under the pretext of legal settlements. The opposition maintains that the NCLT, which was intended to streamline insolvency, is being used as a tool to benefit a select few at the expense of the national exchequer and the common taxpayer.