Bank loan

Why no action against the Essel group for defaulting on a bank loan: the congress at 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, which had not reimbursed the loans to Yes Bank.

Congressman Pawan Khera asked the Center why it continued to support Dish TV promoter Subhash Chandra even when he held a less than 10% minority stake in the company, and why a director had not been named for the company, as was the case. done in many similar cases.

He alleged that the Center failed to act against Mr. Chandra, a BJP-backed Rajya Sabha MP, and that rules were broken 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 by the ruling Bharatiya Janata Party (BJP) or the Essel Group.

“The brazen connection between the Modi government and some of the Prime Minister’s friends is now known not only to the country, but to the whole world. Laws are ignored, misused, unused, twisted, twisted, made flexible to help the the interests of the prime minister’s favorite businessmen and friends,” 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 for loans amounting to Rs 6,789 crore given to Mr Chandra’s Essel Group, which were unpaid when it was placed under moratorium.

SBI Group and other financial institutions have infused Rs 11,760 crore to keep the bank afloat and revive it and today Yes Bank is listed as an associate bank of State Bank of India (SBI) and its board of Directors includes representatives of the SBI. , the Reserve Bank of India (RBI) and other financial institutions, the Congress leader said.

He cited an FIR filed against Yes Bank based on a complaint by Mr Chandra to Gautam Buddh Nagar in Uttar Pradesh, alleging the bank ‘pressured’ his company to take out loans and “mistakenly” invokes the pledged shares of Dish TV.

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

The bank owns 25.63% of the shares of Dish TV, which it took over after the loans turned into stressed assets, he said, adding that the developer’s stake in the company was 5 .93%.

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

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

“Why is the government not taking any action to help the SBI affiliate Yes Bank recover the money of this BJP-backed MP, Subhash Chandra, who was at one time the Chairman of Ekal Vidyalaya of the RSS ?” Corporate Affairs failed to address this issue, despite explicit complaints from Yes Bank and a host of other minority shareholders? Why has there been no ED or SFIO investigation into this matter?” the congress leader asked.

“Why has there been no investigation into the role of the Uttar Pradesh police? It is unprecedented. creditor. It’s a weird story. There can be no special privileges for a BJP-backed MP,” he said while demanding the appointment of an administrator in the matter, as in the case of Satyam and IL&FS.

“Why can’t an administrator be appointed for Dish TV? Mr. Khera asked.

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