Congress leader P Chidambaram has urged the RBI to direct banks to continue to show unrecovered loans from fugitive business tycoons like Vijay Mallya, Mehul Choksi and Nirav Modi on their books, and make efforts to recover them, rather than writing them off as non-performing assets (NPA).
Describing the debate between a loan waiver and loan write-off - a reference to Union Minister Prakash Javadekar's swipe at Congress MP Rahul Gandhi as 'academic', Chidambaram pointed out that the only people likely to be pleased with either development were Modi, Choksi and Mallya.
“The debate on waiver or write-off is academic. People who are mighty pleased are Nirav Modi, Mehul Choksi and Vijay Mallya! Rules are made by human beings. If a rule can be made, it can be unmade too,” Chidambaram tweeted.
“The only way to undo the monumental error is for RBI to direct banks to reverse the entries and continue to show the unrecovered loans from the fugitives as 'outstanding loans' on their books and take steps to recover them,” the former Finance Minister added.
The only way to undo the monumental error is for RBI to direct the banks concerned to reverse the entries and continue to show the unrecovered loans from the fugitives as ‘outstanding loans' on their books and take steps to recover them.