CPI(M) slams Modi Govt over LIC-IDBI bank deal

The CPI(M) Politburo on Sunday blames the Centre for asking public money deposited Life Insurance Corporation (LIC) to bail out the collapsing bank, the IDBI. The Left party in a statement said that it is totally unethical to use the LIC’s Rs 13,000 crore collected from public to save the IDBI, which was collapsed due to allotting bad loans to errant corporates. This is crony capitalism of the worst kind, said the party, urging the Centre to rescind this decision.

“The Politburo of the CPI(M) expresses its strong condemnation of this BJP Government’s decision of asking the Life Insurance Corporation (LIC) to bailout the worst NPA defaulter bank, the IDBI. LIC is the repository of people’s savings in the form of insurance policies. Using this capital to bailout the worst defaulter bank is tantamount to public loot of people’s savings. The names of the rich defaulters are kept as a secret by the Modi Government. Instead of recovering the loans from the defaulters, they are being bailed out by people’s savings deposited in insurance policies,” said the Politburo.

“The LIC is investing Rs 13,000 crores for this takeover and this amount should have been invested to give the policy holders a better return.  Instead, it is being used to bailout the defaulters. This is crony capitalism of the worst kind. The rich can loot and scoot but the common Indian will pay back their loans from their savings,” it added.