Rahul Gandhi has a knack for giving unsubstantiated statements. He is currently campaigning in Karnataka and has already started repeating the same lines he used during the Gujarat elections. The only difference is, his claims are now bigger and they keep growing more far-fetched.
Rahul Gandhi stated during a Gujrat election rally last year that PM Modi had waived off loans worth 1.3 lakh crores for 15 big industrialists but when farmers demand a loan waiver he does not utter a word. The figure itself was an astounding 20,000 crores higher than his previous claim of PM Modi ‘waiving off’ loans of the concerned 15 industrialists that he had made the year before in 2016.
However, Rahul Gandhi’s claims were exposed and he was duly tutored about the fundamental difference between a loan waiver and a loan write off. But sadly, the Congress prince has not learnt much, or he thinks he can get away with lies again and again because he is, well, him.
There have been numerous attempts to explain to Rahul and his cabal that a loan waiver is not the same thing as a loan write off. Write-offs are a purely technical, accounting entry. Write-offs give a true picture of the bank’s assets (loans issued) and the income thereon (interest). Accounts, where prospects of recovery are bleak, are technically written off from the live ledgers and parked in AUCA (Advance Under Collection Account) in accordance with laid down instructions. Most write-offs, irrespective of outstanding, should be treated as technical write-offs and parked in AUCA and recovery process of these accounts will continue until resolution of these accounts. Putting an account under AUCA by no way means the recovery of loans would not continue and the bank or financial institution continues to employ all possible legal and technical means to recover the loan amount.
Moreover, RBI Governor Urjit Patel in his speech in August 2017 had announced that 1.3 lakh crores were the total cost of farm loan waivers by Government of India. But again, facts were summarily ignored and propaganda took precedence for the Congress party and Rahul Gandhi.
Rahul Gandhi repeated the same lie again today while speaking at a rally in Karnataka.
In last few yrs BJP govt waived off loan of 2.5 lakh cr of 15 richest people. When farmers talks of loan waiver, PM Modi & FM say it isn’t their policy. Siddharamaih ji & Congress govt in K’taka waived off loan of Rs 8,000 cr of farmers of Karnataka :Rahul Gandhi, Congress Pres pic.twitter.com/f0aisqpc19
— ANI (@ANI) March 20, 2018
Note how the number of the industrialists receiving this imaginary ‘waive off’ has remained the same. But the loan amount has been growing faster than India’s imaginary intolerance. From 1.1 lakh crores in 2016, it became 1.3 lakh crores in 2017. Now in a matter of few months, it has become 2.5 lakh crores.
Yuva Neta doesn’t know difference betwn Loan Waiver and Loan write off.Will attempt to explain
Loan Waiver = Bank forgoes the amt.
Loan write off: accounting entry and bank continues to recover the loan frm defaulters.
Corporates did not get any waiver. Lie? https://t.co/bXFsqzsO5A
— Ashu? (@muglikar_) March 20, 2018
So either the imaginary ‘waive offs’ which never were have found a magic potion that is making them fatter and bigger or Congress’s beloved prince just has a habit of not bothering to verify facts before uttering out any claim.