New Delhi, Nov 2 The Congress on Monday alleged that the IDBI Bank disinvestment was a “scam” and demanded that sale of the bank to a foreign company be halted and a Joint Parliamentary Committee be constituted to probe the entire process.
Congress general secretary in-charge communications Jairam Ramesh claimed that a foreign company is acquiring IDBI Bank from the government using funds that belong to the bank itself.
“This is yet another major scam by the Modi government, which warrants an investigation. We demand that the process of selling IDBI Bank to a foreign company be halted,” Ramesh said in a post on X.
He also demanded that a Joint Parliamentary Committee (JPC) be constituted to investigate this entire process and the “scam”.
He further called for both valuation reports to be made public.
Earlier, addressing a press conference, Congress leader Shaktisinh Gohil also claimed that the Modi government is selling IDBI Bank to that company which is using IDBI’s own money to buy it.
“When the country gained independence, our ancestors envisioned providing facilities to the common citizens, and then the government established PSUs. Many tasks were accomplished thanks to these PSUs. It was due to the PSUs that postmen delivered postcards, and telephones and trains reached villages and towns,” Gohil said.
“After the passing of (Jawaharlal) Nehru Ji, Lal Bahadur Shastri Ji took the helm of the country, and he established the IDBI Bank. The purpose of establishing IDBI was: to provide loans to small business owners, so that they could work effectively and contribute to the nation’s progress,” he said.
Asserting that the IDBI Bank is not in loss, Gohil pointed out that its non-performing assets are only 2 per cent.
The total profit of IDBI Bank from 2021 to 2026 is Rs 30,105 crore, he pointed out.
Among banks giving the highest profit per employee, IDBI is at the forefront with Rs 49.8 lakh per employee, he said.
“In such a scenario, the question arises, why is a bank that is delivering such high profits being sold?” he said.
Legally, any disinvestment requires a valuation and in the case of IDBI, this valuation was set at Rs 94.42 per share and after the valuation was determined, bidders were invited, but in this, only Fairfax’s name came forward, he said.
The rule states that after the tender is opened, the valuation of the property cannot be determined. But in this case, after the tender was opened, the valuation of Rs 94.42 per share was rejected and then it was reduced to Rs 75 per share, he claimed.
In 2003, the Parliamentary Standing Committee on Finance had declared that the government’s stake in IDBI Bank cannot be reduced below 51 per cent, he pointed out.
“At that time, the BJP was in power at the Centre, and Jaswant Singh was the Finance Minister. Jaswant Singh had promised in his speech in the Lok Sabha on August 8, 2003, and in the Rajya Sabha on August 15, 2003 that ‘under no circumstances would we reduce the stake in IDBI Bank below 51 per cent’.
“But the BJP, which now steals donations in the name of Lord Ram, is determined to break its promise and sell IDBI Bank,” he said.
Putting forward the Congress’ demands, Gohil said the sale of IDBI Bank to a foreign company be halted.
“A thorough investigation of this matter should be conducted through a JPC. Both valuation reports related to IDBI Bank should be made public,” he said.
After opening the offer bid, on whose instructions was the valuation changed, Gohil asked.
An answer should be provided regarding the decision to settle income tax after the bid, he said.
The name of the second bidder for IDBI Bank’s bid should be made public, Gohil said.
“How much money Fairfax is providing and from where, it should be made public. An answer should be given as to why Fairfax was granted relaxation despite RBI regulations,” he said.
The government on October 14 approved the sale of a 60.72 per cent stake in IDBI Bank to Canada’s Fairfax Financial Holdings for about Rs 53,000 crore (USD 5.5 billion), in what would be the largest foreign investment in an Indian bank and a major milestone in the country’s long-delayed banking privatisation drive.
The strategic transaction of the IDBI Bank is expected to be completed by the end of the current financial year, subject to regulatory clearance from the Reserve Bank of India.
(PTI News)
