Thursday, May 5th, 2016

Adani group’s debt equals total debt of Indian farmers, says MP

Narada Desk | May 5, 2016 7:05 pm Print
Adani group is getting special considerations from the NDA government and the group owes Rs. 72,000 crore to banks,JD(U) member Pawan Kumar says

The Adani Group has a debt of Rs. 72,000 crore which equals the total debt burden of Indian farmers, JD(U) member Pawan Kumar Varma said in the Rajya Sabha on Thursday. Varma raised the issue of corporate loans in the Upper House in the debate over liquor baron Vijay Mallya. The disgraced businessman who fled to the UK in March has refused to return despite summons from investigation agencies. Mallyais facing heat over his Kingfisher Airlines,  which owes  Rs 9,000 crore to banks.

Varma also said that state-run banks business houses owe Rs. 5 lakh crore. “Of this, roughly Rs. 1.4 lakh crore is borrowed by just five companies which include LANCO, GVK, Suzlon Energy, Hindustan Construction Company and a certain Adani Group and Adani Power.”

Varma added that the amount owed by Adani group, both in terms of its long-term and short-term debts, today is around Rs. 72,000 crore. On Wednesday in the Rajya Sabha, it was mentioned that the entire amount that the farmers need to pay in terms of loan is Rs. 72,000 crore.

Varma claimed that though the company’s net worth has gone up by 85 pe cent in the last two to three years, economic experts have said the company’s ability to pay the interest on its debts has come down dramatically.

Verma also drew a parallel with the case of Vijay Mallya and said even in the past banks have been pressured to pay loans to people who cannot pay back.

Varma,a former career diplomat and author  also alleged that despite knowing the financially stressed situation of  Adani, a loan of $1 billion was sanctioned by the State Bank of India after NDA came to power.

“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,” he said.

“This company has been given favours that are unimaginable. In Gujarat, their Special Economic Zone (SEZ) was approved despite an adverse high court judgment,” Verma added, seeking a response from the government.

 

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