The Congress on Wednesday alleged that the Narendra Modi government helped the Patanjali group buy out an insolvent company by arranging loans from public sector banks.
Addressing a virtual press conference, Congress spokesperson Pawan Khera alleged that Yoga Guru Ramdev-promoted Patanjali group bought Ruchi Soya for ₹4,350 crore.
“This company [Ruchi Soya] had taken loans of ₹12,146 crore and the banks started making claims for them. Several banks including the SBI were exposed to these claims.”
However, when Ruchi Soya filed for bankruptcy, the banks could recover only 43.6% of the loans given.
Also read: Patanjali’s Ruchi Soya files for ₹4,300 crore FPO
However, when Patanjali decided to take over the defunct company, the PSBs agreed to offer loans worth ₹3,250 crore to fund the acquisition.
Pertinent questions
“This raises pertinent questions: owing to what pressure did the SBI fund Patanjali’s investment into Ruchi Soya? Which banking principle allows a bank that had to write off loans of a corporate to fund the buying of the same corporate by issuing more loans? Under whose advice or insistence did SBI continue to fund a firm that was destined to fail from the start?” asked Mr Khera.
“The Prime minister and the government cannot continue to support these capitalists and businessmen babas at the expense of the exchequer and the common man. This is a nation built by the common man, not built by businessmen babas.”
