New Delhi: Amid political slugfest between the government and the opposition Congress party over alleged bank fraud to the tune of Rs 22,842 crore by ABG Shipayrd, Finance Minister Nirmala Sitharaman on Monday said that the loan was given prior to 2013 during UPA regime and it turned non-performing asset (NPA) in the following year.
The Minister also said that banks took less time to detect the fraud and took necessary action and filed case with Central Bureau of Investigation (CBI).
“This is actually an account which became NPA before 2014 January. In fact, November 2013 is when it was declared an NPA. After that, because it’s a consortium of banks which had business with them they have all sat together to see how best any restructuring can be done which is a due process.. which is done for any account which is under stress, more so it’s a big account and also becoming an NPA,” Sitharaman told reporters here today.
She said that during BJP-led NDA government, banks’ financial health has significantly improved and they are now in position to raise funds from the market.
The CBI has registered a case against ABG Shipyard and its directors including Chairman and Managing Director Rishi Agarwal on a complaint from State Bank of India (SBI).
It has been alleged that the accused cheated the consortium of 28 banks including the branches of erstwhile State Bank of Patiala, Commercial Finance Branch, New Delhi, erstwhile State Bank of Travancore, Commercial Branch, New Delhi, State Bank of India, Overseas Branch, Mumbai etc. The consortium of 28 banks was led by ICICI Bank.
Targeting the government over alleged fraud by Surat-based shipbuilder, the Congress Party spokesperson Randeep Surjewala has asked why CBI took so much time to file FIR in the case. Responding to the question on the alleged fraud, Sitharaman said that soon after the fraud was detected forensic audit was done.
“Everything else was collected and handed over to the CBI in 2020 and in 2022. CBI has filed two cases. In the meanwhile everything has gone into NCLT for resolution. …We have taken lesser time to detect it, take action. CBI (has registered) two cases. (It has gone to) NCLT for resolution. So, action is happening here like the way it happened for every other major defaults,” the Minister said. (UNI)
