Arun Jaitley says that NDA govt is working in national interest.
The government Monday seized control of debt-trapped IL&FS, superseding its board with one led by India's richest banker Uday Kotak, and vowed to stop further loan defaults. This is only the second time after Satyam Computer Services Ltd that the government has taken control of a company board. The government in 2009 superseded the board of Satyam.
The Mumbai-bench of National Company Law Tribunal (NCLT) approved six directors, including Kotak Mahindra Bank MD Uday Kotak, former SEBI chairman G N Bajpai and ICICI Bank chairman G C Chaturvedi, to takeover the board. This followed the Ministry of Corporate Affairs moving NCLT against IL&FS and its subsidiaries, seeking a change of the board and management control of the company. Kotak was named as non-executive chairman of the new board. The other directors approved by the NCLT are retired IAS officers Malini Shankar and Vineet Nayyar, and veteran auditor Nandkishore. The move to take over IL&FS followed its recent defaults roiling Indian markets.
"The government stands fully committed to ensuring that needed liquidity is arranged for the IL&FS from the financial system so that no more defaults take place and the infrastructure projects are implemented smoothly," the Finance Ministry said in a statement in New Delhi.
Shortly after that, Arun Jaitley wrote a blog on Facebook where he said that Rahul Gandhi and his 'cronies' are 'national saboteur'. He said, " Congress wants to sabotage India’s economy by allowing a situation in relation to a company to persist, expand and become unmanageable. It lacks statesmanship and vision."
He further said, " Was it a scam in 1987 when the IL&FS was promoted with the Central Bank of India having 50.5% shares and the UTI having 30.5% shares? Was it a scam in 2005 when LIC acquired 15% stake in IL&FS and in March, 2006 when it acquired another 11.10% stake in the IL&FS? In fact, LIC further bought 19.34 lakh shares in IL&FS in 2010. Do I start calling all these investments today ‘a scam’ as per ‘the perverted Rahul Gandhi school of thinking?’"
Jaitley attached a later from senior Congress leader JP Thomas which urged for intervention from the government to revive IL&FS. Jaitley claimed, the letter "tdemolishes every word that Rahul Gandhi and his coterie has been spreading. It may be advisable for Rahul Gandhi to get some ‘words of wisdom’ from Prof. K.V. Thomas. The Congress Party must remember that ‘the days of crony capitalism are over.’ The NDA Government deals with such challenges objectively and professionally."
With PTI inputs
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