National Press Release – to be released across India
3 September 2016 – for immediate release
Public sector banks are a major channel to loot India, says SBP President, Sanjay Sonawani
President of Swarna Bharat Party, Sanjay Sonawani asked whether Mr Modi wants to implement “Minimum Government, Maximum Governance” or to connive at the loot of India.
On 19 July 2016 the Modi government decided to pump in Rs. 22,915 crores into thirteen public sector banks – even as the entire judiciary receives a tiny fraction of that amount. This is over and above the Rs. 1.02 lakh crores of taxpayer funds already poured into public sector banks between 2009 and September 2015.
Mr Sonwani said that there is a dark side to this funding. A corrupt nexus between political parties and businesses is using banks to loot the country’s wealth. Private companies are hollowed out through bogus losses and political pressure is then used to get public sector banks to write off vast amounts of business loans.
Public sector banks wrote off Rs.59,547 crores in “bad loans” in 2015-16. This is only the tip of the iceberg of unrecoverable debt. Lakhs of crores of rupees of India’s wealth is being brazenly stolen. Crony socialism is alive and kicking under Mr Modi. Even the British were not so brazen.
Mr Sonawani asked Mr Modi whether running businesses, banks and hotels is part of his Maximum Governance plan. Can the people of India not run banks on their own? There is a saying in India: Jis desh ka raaja ho vyapari,us desh ki praja ho bhikhari.
The BJP government cries that there are insufficient funds for the police and judiciary. But there is a limitless supply of funds for the banks. Mr Arun Jaitley said in February 2016: “If additional capital is required by these banks, we will find the resources for doing so. We stand solidly behind these banks.”
The Government doesn’t “stand solidly” behind the police or judiciary or our defence forces, but it “stands solidly” behind banks.
On 26 August 2016 Mr Sonawani asked Mr Modi in an Open Letter to declare by 26 September 2016 the doubling of funds for police and increasing by ten times the funds for the judiciary. Mr Sonawani said that unless the Prime Minister starts performing core functions of government and stops running businesses, SBP will consider a nationwide movement for good governance from 2 October 2016.
Notes for Editors
SBP is India’s only liberal party, committed to defending liberty and promoting prosperity.
Contacts: Sanjay Sonawani (Pune), National President, +91 9860991205
Vishal Singh (Bengaluru), National Vice President, +91 9920613669
Alok Kumar Singh (Ghaziabad), National Joint Secretary and President, UP State unit, +91 9999755334