Arun Jaitley Says Loans to Vijay Mallya Not abandoned

Finance Minister Arun Jaitley on Thursday responded to Vijay Mallya’s loans issue. Arun Jaitley clarified that State Bank of India (SBI) had not ignored Rs 7000 crore loans, including that to Vijay Mallya’s endorsed Kingfisher Airlines.

He said loans to Mallya’s Kingfisher Airlines a write-off only in books. The Government proclaimed that there had been no abandonment of loans extended to the Vijay Mallya’s promoted Kingfisher Airlines that have a loan of Rs 7,000 crore to banks. However, Finance Minister Arun Jaitley calling the loan as ‘a terrible legacy.’

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Replying to CPM leader Sitaram Yechury’s claim that the Government was favoring crocodiles and small fishes were dying from demonetisation, Minister Arjun Jaitley pressed Rajya Sabha members not to go by the literal meaning of write-off.

On speaking about the allegation raised by Sitaram Yechury, Jaitley stated that “write-off doesn’t mean loan maafi. The loan remains and we will chase the loan. The entry in the book changed from a being a performing asset to a non-performing asset.”

“Write-off is simply an accounting entry which results in more focus and more regular follow-up. It is just a technical entry which is done to put a separate account where the follow-up is tougher. These accounts are only meant for recovery.”

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Arun Jaitley stressing that the loan was sanctioned when the NDA wasn’t in power and updated twice during the UPA’s lease. He told, “The Responsibility to pay and the right to recover still ruins.”

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