For the Vijay Mallyas, Nirav Modis and Mehul Choksis, life is kind of different – unbelievably comfortable materialistically. Look at the latest shocker. As per a Reserve Bank of India (RBI) diktat, various Indian banks have been made to technically write off (till September 30, 2019) a combined bad loan worth Rs 68,607 crores that they had extended to the top 50 defaulters (wilful if I may add the word) in the country ostensibly under the excuse of not being recoverable. The information was not provided suo moto by the RBI but as a reply to an RTI query.
"The information on top 50 wilful defaulters and their sum of funded amount outstanding and amount technically/prudentially written off as on September 30, 2019 reported in CRILC by banks, is provided," the RBI said in its written response dated April 24. "Data is as reported by banks and RBI will not be held responsibly or accountable for any misreporting and/or incorrect reporting by the reporting entities," the RBI further added.
The names on the list and the corresponding figures of wilful default are unflattering to say the least. Mehul Choksi and his Gitanjali Gems had a debt burden of Rs. 5,492 crores and he tops the list. The 50 others include Jatin Mehta of Winsome Diamonds (Rs. 4,076 crores), Vikram Kothari of Rotomac Global (Rs. 2,850 crores).
While a few others might not ring a bell of familiarity with the general masses of Assam, we do recognize Ruchi Soya Industries Limited, now owned by Baba Ramdev founded Patanjali and acquired as late as in 2019, with a debt burden Rs 2,212 crores.
And of course, flamboyant Vijay Mallya's Kingfisher Airlines is listed at No 9, with an outstanding figure of Rs 1,943 crores.
Interestingly, Choksi's other firms Gili India and Nakshatra Brands also have loans of Rs 1,447 crores and Rs 1109 crores respectively written off.
"Data is as reported by banks and RBI will not be held responsibly or accountable for any misreporting and/or incorrect reporting by the reporting entities," the RBI said in the written reply to the RTI query.
As each day passes under the strain of the lockdown for the common masses with a fair part of the media wondering about Assam’s dwindling finances, the shocker over the big 50 thieves of the country getting away with a combined amount of Rs 68,607 crores is difficult to accept.
Just consider the “petty” figures we are familiar and grappling with under the circumstances of the day.
As per a G Plus report dated April 29, 2020, Assam saw a drop in its Goods and Services Tax (GST) revenue collection by 80% this year.
A total of Rs 932.36 crores GST was collected in April 2019 while only Rs 193 crores was collected as GST in April 2020 in Assam. This was stated by the finance minister, Himanta Biswa Sarma.
Sarma had further added that that foreign liquor tax as collected in Assam in March 2020 stood at Rs 65 crores, while this fell down to Rs 6.33 crores in April.
Besides this sordid story of Assam’s financial situation, many states of the country have resorted to even as much as 50% deduction of their employees’ salaries.
Given this pitiable situation of the state facing financial doldrums, the timing of the RBI reply on the top 50 wilful defaulters and their loans being written off because they cannot possibly be recovered, is surely a case of inviting super indignation.
It is understandable that while the country is in the throes of the Covid-19 pandemic with the central government is busy devising ways and means to combat the same and the finance ministry is leaving no stone unturned at mitigating the financial difficulties of the poorest of Indians, an explanation of this historic write-off is definitely warranted especially as the current dispensation is perceived to be a bit too corporate-friendly with a whole lot of indulgence in crony capitalism.