Obvio fellas! This is how Modi government have been working since 2014! Don’t be surprised! We, the Indians never have a habit of following the rules! Most of the people take loans from Bank and it remains as NPA and I don’t know how! Especially, in case of Nirav Modi, more than 11,000 crores turned to NPA and he owns one of the prestigious jewellery centre, the “Gitanjali”! Vijay Mallya? He started drinking alcohol and as a result, the entire bank system knelt down the front of him as “Kick God”! And, that’s how he successfully owned Kingfisher for long years!
Realising the crime they have done, bank officials asked them to return the loan! They said, “No Way”! And, that is how our Indian Financial Crisis has started all of a sudden! From 2004 to 2-14, the Congress party was in charge of -the nation and that’s where black money, terrorism, financial crisis, corruption etc- has ruled out our nation! Interestingly, most of the corrupts are either from the Congress party or has linked to the party! Though, knowing this truth, again and again, the Congress has blamed the PM Modi! As a result, he winked one eye and signed the policies! And, that’s how my nation got the right answer as well as the right leader who is capable of changing this developing nation to “Developed Nation”!
Surprisingly, Modi government has issued a policy called Insolvency and Bankruptcy Code (IBC) Policy which helped the government to recover 4 lakh crores rupees of loans! Yes, on Wednesday, the government stated that “Less than half of the staggering Rs 9 lakh crore worth of non-performing assets (NPAs), or bad loans, accumulated by banks had returned due to the system set in place by the Insolvency and Bankruptcy Code (IBC), 2016.”
The figure was revealed by Corporate Affairs Secretary Injeti Srinivas at the conference on Resolving Insolvency organised by industry chamber CII a day after the release of the report by Insolvency Law Committee (ILC) headed by him.
According to the reports of Financial Express, “Noting that the Reserve Bank of India (RBI) had referred 12 accounts, totalling about 25 per cent of the gross NPAs, for resolution under the IBC in June last year, Srinivas said a “good outcome” on half of these cases would help boost confidence in the system, a key component of which is the National Company Law Tribunal (NCLT) — the final adjudicator.”
“If you have 5-6 good outcomes, it will enhance confidence in the system, both domestically and among foreign investors,” Injeti Srinivas said. Adding to it, “Once these 12 get settled, the speed will go up,” he said, noting that the second batch of 21 cases sent by the RBI to the Insolvency and Bankruptcy Board of India (IBBI) in January were taking time to come through the resolution process. The government has embarked on a two-pronged strategy on bad loans.
On the one hand, it has brought in the IBC which provides for a six-month time-bound insolvency resolution process, extendable by another 90 days. On the other hand, it has approved a Rs 2.11 lakh crore recapitalisation plan for state-run banks.” he said.
According to the reports, Noting that the object of the exercise was not just loan recovery but to develop a robust market for stressed assets in India, Srinivas said some of these were drawing good bidder interest for revival, particularly in the steel sector, where the favourable short-term outlook has helped jack up steel asset prices.
Srinivas has claimed that towards bolstering infrastructure 1,800 insolvency resolution professionals are in place in a period of less than two years. Besides, the government is also considering the creation of additional NCLT benches for speedier disposal of cases.
Along with Srinivas, providing statistics of the IBC policy process, IBBI Chairman M.S. Sahoo said that a total of 650 corporate cases were admitted for resolution, of which 500 are ongoing. Of the rest, 90 have already exited via the resolution or liquidation routes and around 60 have been closed after review.”
Do you know about IBC policy which washed out the financial crisis of bank system?
According to wiki source, “The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 5 May 2016. The Code received the assent of the President of India on 28 May 2016. Certain provisions of the Act has come into force from 5 August and 19 August 2016. The bankruptcy code is a one-stop solution for resolving insolvencies which at present is a long process and does not offer an economically viable arrangement. A strong insolvency framework where the cost, time, incurred is minimised in attaining liquidation has been long overdue in India. The code will be able to protect the interests of small investors and make the process of doing business a less cumbersome process.”
See! I told you! This is how one government should work! Modi government did not take a charge to spare the corruption! But, every official under the Modi government has taken the oath to clean up the nation from these corruptions which are already ruined this country its roots. And that’s the very basic reason for the question why do we support Modi government!
Source: Finacial Express