Why no action against the Essel group for the default of a bank loan: from the congress to the center

Congress asked why an administrator was not appointed for the Essel group. (To file)

New Delhi:

Congress alleged on Friday that there was a connection between the Center and its “corporate friends,” and questioned why no action had been taken against the promoters of Dish TV Essel Group, who failed to reimburse their costs. loans to Yes Bank.

Congressional spokesman Pawan Khera asked the Center why it continues to support Dish TV promoter Subhash Chandra, even when he has a minority stake of less than 10 percent in the company, and why a director was not named for the company, as has been done in many similar cases.

He alleged that the Center failed to act against Mr. Chandra, an MP from the BJP-backed Rajya Sabha, and that the rules were bypassed and laws ignored in the case “to protect the vested interests” of ” favorite businessmen “of Prime Minister Narendra Modi.

There was no immediate comment on the allegations from either the ruling Bharatiya Janata (BJP) or the Essel group.

“The cheeky bond between the Modi government and some of the Prime Minister’s friends is now known not only to the country, but to the world. Laws are ignored, misused, unused, distorted, changed, made flexible for the special interests of favorite businessmen and friends of the prime minister, ”Khera told reporters here.

In the case of Dish TV, he alleged that Yes Bank, which is a private bank, suffered huge losses in 2020 on loans amounting to Rs 6,789 crore made to Mr Chandra’s Essel group, which were unpaid when it was placed under moratorium.

SBI Group and other financial institutions injected Rs 11,760 crore to keep the bank afloat and revive it and today Yes Bank is classified as associated bank of State Bank of India (SBI) and its board. board includes representatives of the SBI. , the Reserve Bank of India (RBI) and other financial institutions, said the president of Congress.

He cited an FIR filed against Yes Bank on the basis of a complaint by Mr Chandra to Gautam Buddh Nagar in Uttar Pradesh, alleging that the bank “pressured” his company to take out loans and “wrongly” claims the pledged actions of Dish TV. .

Following the FIR, Mr Khera said Uttar Pradesh police prevented Yes Bank management from invoking the pledged actions of Dish TV.

The bank owns 25.63 percent of the shares in Dish TV, which it bought back after the loans turned into distressed assets, he said, adding that the promoter’s stake in the company was rising. at 5.93 percent.

Yes Bank wrote to the Securities and Exchange Board of India (SEBI), Minister of Finance and Minister of Foreign Affairs in November, drawing their attention to this blatant illegality, but no action was taken, Khera said. .

The bank has also written to SEBI and the Ministry of Commercial Affairs to suspend Dish TV’s board of directors, appoint an administrator to manage the company’s affairs and conduct forensic investigations into its accounts, he said. he adds.

“Why is the government not taking any action to help the SBI-affiliated Yes Bank recover the money from this BJP-backed deputy, Subhash Chandra, who was at one point the chairman of the Ekal Vidyalaya of the RSS? Didn’t Corporate Affairs address this issue, despite explicit complaints from Yes Bank and many other minority shareholders? Why was there no ED or SFIO investigation into this matter? “Asked the president of Congress.

“Why has there been no investigation into the role of the Uttar Pradesh police? It is unprecedented. It’s a weird story. There cannot be special privileges for a deputy supported by the BJP ”, he declared while demanding the nomination of an administrator in the matter, as in the case of Satyam and IL&FS.

“Why can’t an administrator be nominated for Dish TV? Asked Mr. Khera.

(Except for the title, this story was not edited by NDTV staff and is posted from a syndicated feed.)

Previous Natural gas prices are lower than we expected. It can still cost more to heat your home this winter.
Next 2021: For India, a year of diverse fortunes