Massive! PM Modi forced 2,100 companies to settle Rs 83,000 crore bank dues

For those who live with the myth that all politicians are scamsters, here is a tiebreaker. If one man can do this in 4 years I can imagine how India would have been if the same was done 70 years back.

Fearing the loss of control over their companies has prompted promoters, who have defaulted on repayment of loans to banks, to settle their dues of around Rs 83,000 Crore before action was initiated under the newly-enacted Insolvency and Bankruptcy Code (IBC).

PM Modi has brought in a draconian law to force people to payback loan to Banks(tool of capitalism). Such a fascist man is our PM. There can be no tolerance against the opposition and no compromise when it comes to nation.

According to the data compiled by the Ministry of corporate affairs (MCA) showed that, over 2,100 companies have cleared their outstanding amounts, a majority of which came after the government amended the IBC to explicitly bar promoters of companies that were classified as a non-performing assets (NPAs) from bidding for these companies where the National Company Law Tribunal, the bankruptcy court, initiated action. A loan is classified as an NPA if dues are unpaid for 90 days.

The move had faced severe criticism from the corporate sector as top names in the industry such as Ruias of Essar, Singals of Bhushan Group and Gaurs of Jaiprakash Group were locked out of the resolution process and there were fears that the bids may not be aggressive, resulting in the lenders having to recover only a small part of the loans.

The government had countered the criticism by arguing that the move was meant to ensure that the promoters did not walk away with the same asset at a heavy discount. A clause was, however, inserted allowing the promoters to participate if they cleared the dues.

It could be done only by this Government under PM Modi. It is only this man who could do this! UPA has no guts to do such things. People do not show any interest of their concern in these kinds of reform by the central Government. Its simple people in India are less bothered about strict actions by the government, they just know how to criticise and condemn the leaders rather than helping and cooperating with them for the betterment of the nation. PM is clearing the Congress mess up now. I believe those fled will be brought back to face prosecution or surrender monies as well.

“The real success is the pressure on loan defaulters to clear dues. The borrowing and lending culture is changing because of IBC,” said a source, who did not wish to be identified.

Source: Times of India