The RBI compiled a list of 12 companies as the defaulters of the loans and the Government is trying to recover this loan. The RSS/BJP came up with the recovery scheme called “bankruptcy code”. Surprisingly, the companies that supported RSS/BJP are not under the scanner and among the dirty dozen, the name of Malaya does not figure. The Non-performing asset (called NPA) runs into several lakhs crores and it is a big money.
This is the money not earned by the companies but had gone straight to their accounts from the public money. This is what is serious and might lead to a debt trap. The debt trap is a vicious falling into a hole whose bottom keeps on deepening with each passing day. The companies like India’s Reliance have defaulted to lay debt recently and this is going to be a difficult issue. The ultimate loser in the game of debt will be the common man as the government will use the public money to finance the debt.
When India is ruled by the axis of Adani-Ambani which became rich through wide-ranging government support, the situation will be so draconian that the politicians will have to kowtow to them. This can be stopped only with a strong public awakening. Though in India the situation is serious and as the labour force is scattered in the unorganised sector and to a great extent still rely on the agricultural activities, the full view is difficult to get. But and this is the but, the signs of misery are all over. The farmers are committing suicides, the unemployment is increasing, the small and medium businesses are collapsing, and the government will have to let the global financiers have to have more players to enable debt restructuring.
The serious issue is the making of conduit between the government and the banks to fool the poor and marginalised. The Government launches publicity program to create an opinion that all is well in the country and that the country is developing, but look at the Aadhar card related scams in the banking system where the same Aadhaar card number 123123123123 appears on the dole out package by the banks. This is the biggest trickery of the farmers done by the very government which is supposed to safeguard the interests of the citizens.
Author – Mangesh Dahiwale