Bank defaulters should not be allowed to contest elections, AIBEA writes to EC

In a letter addressed to the chief election commissioner, VS Sampath, the bank union has demanded that defaulters should be disqualified from contesting elections in a bid to tackle rising bad loans

trithesh

Trithesh Nandan | March 21, 2014



As public sector banks continue to be burdened by ballooning non-performing assets (NPAs), one of the bank unions has aggressively gone against bank defaulters who are likely to contest general elections.

The Chennai-headquartered All India Bank Employees’ Association (AIBEA) has demanded in a letter to the election commission (EC) that loan defaulters should not be allowed to contest the 2014 general elections held in April and May. “The nominations of candidates who are loan defaulters in banks should be rejected,” said AIBEA, the body representing clerical and subordinate staff from various public sector banks. The letter was addressed to VS Sampath, chief election commissioner (CEC), demanding action against such individuals.

"We have alerted this issue to the CEC before elections. Drawing attention on this issue is very important as some of these defaulters are holding high positions," said DD Rustogi, joint secretary of AIBEA. "Such candidates, owing big loans to banks and defaulting on it, should be debarred from contesting elections. If you fix accountability at the time of elections, it will give a stern message to others too," he added.

"One of the borrower companies in which a central minister is directly connected is also a defaulter to the tune of Rs 350 crore. Two top loan defaulters are Padma Shri awardees and owe Rs 930 cores and Rs 580 crores respectively to banks. Another top defaulter is a member of the Rajya Sabha who is yet to repay loans over Rs 6000 crore," the AIBEA letter said. The AIBEA had made public 50 top defaulters in December where the now-grounded Kingfisher airlines (with an outstanding figure of Rs 2673 crore) topped the list. The airline company’s chairman Vijay Mallya is a member of the upper house. 

The AIBEA said by March 2013, bank NPAs have amounted to Rs 1,64,461 crore. The fresh bad loans in the last four years have gone up to Rs 3,15,465 crore. (A loan is classified as an NPA when a borrower is not meeting its principal and interest payments on loan received by lenders. If the amount is overdue for 90 days in case of commercial loans, and 180 days for consumer loans, it becomes an NPA.)

The union has also demanded disqualification of such members of parliament (MPs) who are defaulters. "The rules regarding disqualification as provided in the Constitution and Representation of People Act, 1951 should be suitably amended for this purpose," said one of the demands of the AIBEA. 

"We have received a letter from the bank union," said Rajesh Malhotra, director media & communication of the election commission but did not specify the steps that the commission will take in the matter.

Comments

 

Other News

Sowing wheat earlier can help increase yields in India: US researcher

Yield gaps in wheat production in India can be countered with an earlier sowing date, says a University of Michigan researcher.   Using a new way to measure wheat yields, Meha Jain, assistant professor at the U-M School for Environment and Sustainability, found that the wheat yie

Giving birth as a Baiga

Kharpariya village, about 50 km from the headquarters town of Madhya Pradesh’s Mandla district, is like many villages in the region, home to the Baiga, deemed a particularly vulnerable tribal group (PVTG) for whom permanent contraception methods are banned to prevent extinction. However, care for p

Being the prime minister’s brother

Somabhai Modi says he remembers only one occasion when he offered his younger brother prime minister Narendra Modi advice regarding work. This, he says, was when Modi was chief minister of Gujarat. After one of his weekly grievance redressal sessions, the then chief minister had enquired after the well-b

Should ration cards not linked to Aadhaar be rendered ineligible?

Should ration cards not linked to Aadhaar be rendered ineligible?

INS Kiltan commissioned into Indian Navy

 INS Kiltan, the third anti-submarine warfare (ASW) stealth corvette built under project 28 (Kamorta class), was commissioned into the Indian Navy by defence minister Nirmala Sitharaman at the naval dockyard in Visakhapatnam.    The anti-submarine warfare stealth corvet

SAIL`s special grade steel used to build stealth corvette

Maharatna enterprise, Steel Authority of India Ltd. (SAIL) has supplied defence grade micro-alloyed grade of steel (DMR 249A) steel plates for the indigenously built anti-submarine warfare (ASW) stealth corvette INS-Kiltan commissioned into Indian Navy.    SAIL’s integ



Video

Grand Diwali celebrations in Ayodhaya on eve of diwali

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter