PM Modi benefitting 'friends' with 59-minute loan scheme: Congress

The Congress Sunday accused Prime Minister Narendra Modi of benefitting "friends" by promoting private and crony capitalists at the expense of public institutions and demanded an independent judicial probe into the new '59-minute loan scheme' for the MSME sector.

Alleging the scheme is a "scam", Congress leader Gaurav Vallabh demanded that the affairs of portal www.psbloansin59minutes.com, processing loans to small industries, be fully investigated and its contract with the government cancelled.

There was no immediate response from either the government or the PMO or the ruling BJP over the charges made by the Congress.

Prime Minister Modi launched a new facility for micro, small and medium enterprises (MSMEs) alongside a slew of measures for the sector, which, Vallabh said, incidentally has been battered for a long term due to demonetisation in November 2016.

He said a platform to facilitate quick loans was launched on November 2, 2018 with "pomp and promotion show typical in nature of various types of propaganda of this government".

The Congress leader alleged that the web portal is supported by public sector institutions such as SIDBI and PSU banks as partners, even though it is owned by Ahmedabad-based private company CapitaWorld Platform Pvt Ltd.

He alleged that the company is charging Rs 1,000 and another Rs 180 as GST from each small industry registered on its website and so far lakhs of entities have been "cheated" by it.

Based on the euphoric response, if 1 million MSMEs apply for the same, the said company stands to gain Rs 100 crore for lead generation, he said and asked, "Should a government scheme be allowed to enrich private parties?"
"Why is the work of bankers being used for enriching private individuals while the nature of the work is not complex and banks have been doing the same earlier also?