Prime Minister Narendra Modi Saturday launched a blistering attack on the Congress for leaving the economy on a 'landmine' by its indiscriminate lending, saying loans were handed out to select businessmen after phone calls were made by 'namdars' (dynasts).
He blamed 'phone-a-loan' scam of the previous UPA regime where money was lent by banks to select rich businessmen close to a particular family for mounting non-performing assets (NPA) or bad loans but vowed to recover every penny from defaulters.
None of the twelve biggest defaulters, who between them account for over Rs 1.75 lakh crore of NPAs, were given loan by the present government, Modi said at the launch of payments bank of the Indian postal department.
He said while the previous UPA government hid the bad loans, his government has properly recognised them and brought tough laws to deal with defaults and recovery money.
The Prime Minister said the country was cheated when the last government put such loan amount at Rs 2-2.5 lakh crore when it actually was Rs 9 lakh crore.
This comes days after Congress President Rahul Gandhi's attack on the government for NPAs jumping to Rs 12.5 lakh crore under the BJP rule from Rs 2.5 lakh crore under the previous UPA regime.
Modi said when his government came to power in 2014 it noticed that public-sector banks had been plundered. Loans of banks jumped to Rs 52 lakh crore from 2008 to 2014 from just Rs 18 lakh crore in the previous six decades.
Loans were given without any due diligence and keeping aside all rules and norms, he said, adding defaulters were given further funds in the name of loan restructuring.
"How were these loans given? One phone call from the namdars would get the rich loans," he said alleging a 'phone-a-loan' scam under the UPA government.
"This phone banking of Congress and its namdars caused a lot of damage to the country," he said, adding banks obliged namdars because top executives were appointed by the same namdars. "Despite knowing that the loans would not be returned, banks lent money."
"This growth is proof of growing strength of the Indian economy and that the country is moving in the right direction," he said. "Today the country is not just the fastest growing economy in the world but also the one that is eradicating poverty at the fastest rate."
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