Joseph Goebbels famously said that if you tell a lie big enough and keep repeating it, people will eventually come to believe it. Our political leadership seems to be following these principles and manufactured lies are spread to mislead the masses.
The Congress is dying a slow death and there are many contenders who want to fill the vacuum. Arvind Kejriwal-led Aam Aadmi Party (AAP) is pushing hard and going beyond the established principles of politics to project itself as an alternative to the ruling BJP. In the recent series of attacks, AAP is accusing the Narendra Modi government of giving undue financial benefits to corporates by writing off loans worth more than Rs 10 lakh crore.
A loan write-off is a technical term which is often used to sanitise the balance sheet and get some taxation benefits. A write-off doesn’t mean that the bank will stop chasing for recoveries. A loan waiver is different in which banks waive off the amount and no efforts are made for further recovery.
Kejriwal and team is well aware of these technicalities but they seem to be following Goebbels principle.
RBI data shows that corporate loan accounts which were subjected to restructuring have decreased consistently after 2015. Overall loan amount subjected to restructuring has also declined consistently, except for 2021 which is due to stress caused by the Covid-19 pandemic.
Insolvency law was…
