Ludhiana, March 24, 2014: All India Bank Employees Association (AIBEA) has been championing the struggle against alarming increase in bad loans, particularly by the willful defaulters and against the nexus that is responsible for these deliberately created bad loans.
In a statement here today, Naresh Gaur, Secretary, Punjab Bank Employees Federation (Ludhiana) said that besides various demands of AIBEA on this issue, “we have been demanding that Bank loan defaulters should not be allowed to contest in elections and should be debarred from holding public offices. Since the general elections are going to be held shortly, AIBEA, State Federations, All India Bankwise Unions, State-level Unions, Unions in Co-operative Banks and RRBs, District and Town Associations has written a letter to Chief Election Commissioner that the nominations of candidates who are loan defaulters in Banks should be rejected and the rules regarding disqualification as provided in the Constitution and Representation of People Act, 1951 should be suitably amended for this purpose.”
He added what is disturbing is that amounts involved in willful default of bank loans are also increasing. Some of these defaulters are holding high positions. One of the borrower company in which a Central Minister is directly connected is also a defaulter to the tune of Rs. 350 crores. Two top loan defaulters are Padma Sri Awardees and owing to Banks Rs. 930 cores and Rs. 580 crores, respectively. Another top defaulter is a member of the Rajya Sabha owing to the Banks more than Rs. 6000 crores.
Hence, besides various other existing disqualifications as provided under the Constitution and the Representation of People Act, 1951, a specific provision should be added to debar and disqualify candidates from contesting in the ensuing elections to the Lok Sabha, if they or the companies in which they are connected are defaulters of loans to Banks.
Gaur further said that in the recent years, bad loans have increased alarmingly as under:
31.03.2008 - 39,030 crores
31.03.2009 - 44,954 crores
31.03.2010 - 59,927 crores
31.03.2011 - 74,664 crores
31.03.2012 - 1,17,000 crores
31.03.2013 - 1,64,461 crores
In addition, every year huge amounts of profits of the Banks are being utilised to provide against bad loans:
For 2008 – 2009 : 11,121 crores
For 2009 – 2010 : 18,036 crores
For 2010 – 2011 : 29,380 crores
For 2011 – 2012 : 38,177 crores
For 2012 - 2013 : 43,102 crores
For last 5 years : 1,40,266 crores
Further the following huge amounts of bad loans have been actually written off:
For 2008 – 2009 - 15,995 crores
For 2009 – 2010 - 25,010 crores
For 2010 – 2011 - 23,895 crores
For 2011 – 2012 - 20,892 crores
For 2012 – 2013 - 32,218 crores
In last 5 years - 1,18,010 crores
Naresh Gaur (file photo)