[This less than two months old investigative report below has become highly relevant in the light of the just announced Rs. 2.11 lakh crore bail-out plan for the PSBs, and, thereby, the concerned defaulters. It's though not an "early Diwali", it's a post-Diwali mega gift hamper for them, as it looks.]
http://skepticindians.com/npa-scam-government-secretly-writing-off-rs-3-04-lakh-crores-loans-reliance-adani-vedanta-group-largest-debt/ NPA Scam: Government secretly writing-off Rs.3.04 lakh crore loans of Reliance, Adani, Vedanta group with the largest debt ? September 05, 2017, 09.00 AM IST According to a report by Credit Suisse published in October 2015, the total amount of money owed to the state-owned banks alone was calculated to be Rs 3.04 lakh crore. Here’s a list of the top 10 companies with the largest debt. Here is a simple explanation of how the scam works as explained in our Global War on Cash Series. Most of these loans are classified in banking books as Non-Performing Assets (NPAs). In simple terms, an asset is tagged as non-performing when it ceases to generate income for the lender, meaning these loans became unrecoverable bad loans. But wait, when the companies themselves are making good profits how could their loans be termed NPAs? According to the Comptroller and Auditor General (CAG) of India Shashi Kant Sharma, a significant part of NPAs amount to fraudulently obtained advances and a large part of these loans may now be irretrievable as they are likely to have been transferred abroad. He also said that in recent times, there have been frauds against institutions, frauds committed against banks, especially public sector banks that are struggling. NPAs do not just reflect badly in a bank’s account books, they adversely impact the national economy. So what has the Government been doing about this? Well, simply writing it off the books. Government has been writing off such corporate debts in lakhs of crores of rupees under what is called ‘revenue forgone’ now known by a new fancy name ‘revenue impact of tax incentives’. Data presented by Santosh Kumar Gangwar in a question answered in Rajya Sabha on 2nd August 2016 show the extent of such revenue foregone in 2015-16 – this is estimated to be Rs 6.11 trillion. According to the ‘Revenue Forgone Statement’ corporate companies on an average get tax waiver of Rs 7 crore every hour or Rs 168 crore every day or Rs 5.32 lakh crore every year. It’s close to three times the amount said to have been lost in the 2G scam. About four times what the oil marketing companies claim to have lost in so-called “under-recoveries” in 2012-13. In the nine years from 2005-06 to 2013-14, the corporate karza maafi amounted to Rs 36.5 lakh-crore. That, in case you like the sound of the word, is Rs 36.5 trillion. This is how the richest 1% of Indians get to own 58.4% of the country’s wealth. Now this debt write-off is also a major fraud and has been continuing on a regular basis since a long time. Even the Supreme Court has reprimanded RBI whose responsibility it is to keep a watch on this and ordered it to share the list of major defaulters which RBI didn’t had any information on. So where has all the money gone? The US Department of Commerce estimates that each $1 billion in trade deficit translates to about 13,000 to 19,000 lost jobs for Americans – meaning that every $1 billion sucked out of India will stabilize atleast 13,000 jobs in the US. How many jobs would RS 36.5 trillion that the govt. wrote off save? Roughly around 80 lakh American jobs, enough to sustain entire US economy with job/wage guarantee multiplier effects setting in. This same 80 lakh jobs it was promised in 2011 will be created in India instead by FDI in Retail. No one asked from where the money for investment would come from when the entire US-EU economies themselves were running bankrupt? Non-performing assets or NPA have been making news for months now. The notorious liquor baron Vijay Mallya’s company owed Rs 9,000 crore, before he fled to the UK. However, in the larger pond of defaulter, he could be seen as a small fish at best. According to a report by Credit Suisse published in October 2015, the total amount of money owed to the state-owned banks alone was calculated to be Rs 3.04 lakh crore. The Supreme Court ruling in December 2015 made it mandatory for all banks to reveal the names of the defaulters. So far, those banks have been hesitant, to say the least. The Reserve Bank of India hasn’t released the names of individual defaulters either, as per a report by Catch News. The Credit Suisse report gives us an insight into the top ten defaulting companies, as of March 2015. Reliance Group: Anil Ambani-led Reliance Group operates in the power sector and the entertainment business. It also has business interests in insurance, wealth management and telecommunication sector. The Reliance-group owes the banks, Rs 1.25 lakh crore, the largest amount owed by any company, according to the report. Related image Adani Group: Founded by Gautam Adani, the company does business in logistics, agribusiness and energy sectors, among other things. The founder is known to be close to Prime Minister Narendra Modi, probably due to their shared origins in Gujarat. His company has defaulted on Rs 96,031 crore of the banks’ money. Image result for Modi adani Essar Group: Another giant with diverse business interest ranging from services to steel, the Essar Group was founded by brothers Shashi Ruia and Ravi Ruia. Rigged with controversy, the group balance sheet shows a debt worth Rs 1.01 lakh crore. GVK Group: The GVK group in a large Indian conglomerate founded by Gunupati Venkata Krishna Reddy. The company has business interests in the energy sector, hospitality industry, infrastructure and life science. The total amount of money owed by the company is Rs 33,933 crore. Videocon Group: One of the big names in India, it was famous for making television and now offers d2h services. Its founder and CEO Venugopal Dhoot also ventured into the telecommunication business. This group owes the banks about Rs 45,405 crore. Lanco Group: Lagadapati Madhusudan Rao’s company is in the construction and power (solar and thermal) business. As per the report, he owes Rs 47,102 crore the banks. GMR Group: This is the company that built the Delhi airport’s International Terminal T3 which cost around 12,850 crore. His company now owe Rs 47,976 crore to the banks. JSW Group: The steel giant was founded by Sajjan Jindal who also the Chairman of the company. He is known to have organised a meeting between Prime Minister Narendra Modi and his Pakistani counterpart, Nawaz Sharif. His company, on the other hand, has a debt of Rs 58,171 crore on its balance sheet. Jaypee Group: Run by Manoj Gaur, the company is said to have flourished well in Former Chief Minister Mayawati’s reign in Uttar Pradesh. His company has cost the banks Rs 75,163 crore. Vedanta Group: Headquartered in London, Anil Aggarwal’s The Vedanta group operates in the metals and mining sector. Second-largest defaulter on the list, Vedant group owes the banks nearly Rs 1.03 lakh crore. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at https://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
