According to sources loans were provided without following due diligence and as a result, defaulters fled the country and the banks had no money to lend, Sitharaman said while referring to fugitive business barons like Vijay Mallya and Nirav Modi. Meanwhile Sitharaman had also held the portfolios of corporate affairs and finance and was the Minister of State (Independent Charge), Commerce and Industry.
As per report huge loans were provided by banks at the drop of a hat "when a phone call was made," by the powers that be, the minister said, addressing a Bharatiya Janata Party (BJP) traders’ wing meet in Chennai on Tuesday. She asked "Public and private sector banks are all facing difficulty due to this. Though policy allowed banks to provide loans, banks are not prepared to lend as they do not have money and why this happened”.
Moreover loans were provided to
"acquaintances" without any assessment, scrutiny or background check
to ascertain if the promoters could actually carry on the business and pay back
the loan and it was "crony capitalism," followed by the UPA regime. Hence
Sitharaman said the BJP led Centre has given good governance and all welfare
schemes have to be taken to the people.
