Adani Group’s debt equals to farmers’ debt: JD-U

Sourabha Published On : May 5, 2016 at 2:10 PM

New Delhi, May 5:

Janata Dal-United (JD-U) leader Pavan Kumar Verma on Thursday raised the issue of corporate loans in the Rajya Sabha, and pointed out that the Adani Group has a debt of Rs.72,000 crore — equal in amount to the total debt of Indian farmers.

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“PSUs are owed around Rs.500,000 crore by the corporate houses, and of this amount roughly Rs.1.4 lakh crore is owed by just five companies which include LANCO, GVK, Suzlon Energy, Hindustan Construction Company and a certain Adani Group and Adani Powers,” Verma said during Zero Hour.

“The amount owed by this group, both in terms of its long-term and short-term debts, today is around Rs.72,000 crore. Yesterday, it was mentioned that the entire amount that the farmers need to pay in terms of loan is Rs.72,000 crore,” Verma pointed out.

“The Adani Group itself owes the banks Rs.72,000 crore. It does not matter if he (Adani) or the group has the ability to repay. In last two to three years, the company’s net worth has gone up by 85 percent. But economic experts say the company’s ability to pay the interest on its debts has come down dramatically during the course of the financial year,” he said.

Verma also drew a parallel with the case of Vijay Mallya.

“Despite knowing the crisis faced by Mallya, a loan of $1 billion was given by the State Bank of India after this government came to power,” the JD-U leader alleged.

“I don’t know what is the relationship of this government with this (business) House, but Adani is seen everywhere the prime minister has gone. And the point of the matter is that PSU banks are influenced to pay loans to people who cannot pay back,” Verma said.

The JD-U member sought a reply from the government in this regard.

“I want a reply from the government as to whether they are aware or not. This company has been given favours that are unimaginable. In Gujarat, their Special Economic Zone (SEZ) was approved despite an adverse high court judgment. But the UPA government had not approved it,” Verma added. (IANS)

State Bank of India Vijay Mallya