Tuesday, April 13, 2021
Home Fact-Check Political Fact-Check Patanjali paid the dues of Ruchi Soya after acquiring it, Congress party falsely accuses...

Patanjali paid the dues of Ruchi Soya after acquiring it, Congress party falsely accuses RBI of writing off the loan of ‘rich capitalist’

After Patanjali acquired Ruchi Soya in December 2019, all the dues of the company were paid off

In reference to the list of top 50 bank defaulters in the country released by the RBI, the official Twitter page of Karnataka Congress today posted a tweet claiming that the apex bank had written off loans worth Rs 68,000 crores to those who could afford to pay it. Accusing the government of favouring rich capitalists over poor people, the tweet mentioned that a staggering Rs 2,212 crores of debt by the Ruchi Soya Industries, which belongs to Patanjali group, have been written off.

Through the tweet, the Congress party has insinuated that the BJP has been helping its “capitalists friends” by writing off their loans while turning a blind eye towards the miseries of the underprivileged people. It cited the case of Ruchi Soya Industries, which belongs to Ramdev baba’s Patanjali group and whose loan worth Rs 2212 crores was written off by the banks. The Congress party alluded that the close relationship between Ramdev Baba and the BJP is the reason why an astounding loan amount of Rs 2212 crore by Ruchi Soya Industries was written off.

The Karnataka Congress’ allegation against the BJP came after it got hold of a response by the RBI to an RTI in which the central bank listed the top 50 wilful defaulters accused of cheating Indian banks and loans taken out by them that have been written off. The RTI query was filed by a man named Saket Gokhale who claims himself to be an RTI activist.

However, there is little merit in the accusations levelled by the Congress party. Though Saket Gokhale had sought the list of defaulters as on February 16, the RBI provided the information on top 50 wilful defaulters and their sum of the funded amount outstanding and amount written off as on September 30, 2019, claiming that the requested latest information was not available with the central bank.

As of September 30, 2019, Ruchi Soya Industries was an independent entity, having no links with the Ramdev Baba’s Patanjali group. Headquartered in Indore, Ruchi Soya, once one of the largest processors of edible oils, filed for bankruptcy in December 2017. Its accumulated debt was Rs 12,000 crore; sales had fallen from Rs 31,500 crore in 2014-15 to Rs 12,000 crore in 2017-18.

In December 2019, the Patanjali group completed the transfer of the equity and debt portion for its acquisition of Ruchi Soya through proceedings under insolvency and bankruptcy resolution. In this deal, Patanjali had infused Rs. 1,150 crore as equity and the remaining Rs. 3,200 crore had been raised through bank debt. After Patanjali acquired the company, all the dues of the company were paid off, as informed by the Patanjali group.

The funds transferred by the Patanjali group for Ruchi Soya’s acquisition would have come as a boost for the banks as they would have been able to write back the amount received from the resolution. Since the list shared by the RBI is from September 2019, the updated list of defaulters will not have the name of Ruchi Soya as it became a Patanjali group firm in December 2019 and all its dues as pegged by the National Company Law Tribunal(NCLT), which presided over its insolvency proceedings, were settled off by the Patanjali group.

However, this nitty-gritty of Ruchi Soya’s acquisition was lost on the Congress party which had shared outdated data to assert that the government is hand in gloves with the capitalists while ignoring the plight of poor people. The Patanjali group followed the Insolvency and the Bankruptcy Code to legitimately acquire the Ruchi Soya Industries without seeking any special favours from the Modi government. It also paid the dues owed by the lenders of the Ruchi Soya, thereby reducing the write-off loans of many banks, including SBI, one of the largest lenders to the Ruchi Soya Industries group. With the aim of painting the BJP as a purveyor of crony capitalism, Congress deceitfully shared old data to assert that the central government has written off loans of organisations whose founders have ideologically aligned with the ruling dispensation.

Another important point is that writing off a loan does not mean it has been waived and the borrower no longer need to pay it. Writing off a loan means the bank acknowledges that a loan has gone bad and the borrower is unable to service it. This is an accounting procedure to reflect the true picture of the finances of the bank, because if if is not listed as non-performing asset (NPA), it will continue to show as good loan in the book of bank. Such not listing NPAs in time has resulted in collapse of banks like Yes Bank and PMC Bank. Even after a bad loan is written off, the banks continue the efforts to recover the money. It is done by selling the pledged assets and securities, and if it involved criminal charges, the law enforcement agencies also take over the properties of the defaulter. For example, properties worth crores have been seized from defaulters like Viyay Mallya, Nirav Modi etc, and banks can get their dues from such assets.

Leftist lawyer Prashant Bhushan, who is notorious for spreading fake news, had also made the same claim as Karnatak Congress and accused the govt doing undue favour for the Patanjali group. But in a surprisingly rare move, later he apologised to Bab Ramdev after he was informed about the details of the transaction. Although Prashant Bhushan is not known for accepting that he has spread fake news and mostly he brazens it out after his fake news is pointed out by netizens, today due to some reason he accepted his mistake and offered an apology.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Mayor Sadiq Khan vows to bring the Indian Premier League to London to boost his reelection chances: Details

London mayor Sadiq Khan promises to bring the Indian Premier League to the British capital as part of his reelection campaign.

BBC Urdu documentary reveals how state-sanctioned Pakistani textbooks demonize Hindus

BBC Urdu published a video on YouTube highlighting the prejudice against Hindus that textbooks in Pakistan advocate.

Constant ‘beheading’ threats by Islamists: Hindus come out in large numbers to support Yati Narsinghanand Saraswati, demand security for him

Enraged by the Muslim politicians and religious groups openly issuing death threats, Hindus come together to support Yati Narsinghanand Saraswati.

Here’s why lockdown is no longer an option and imposing another at this point makes no sense at all

Not imposing a lockdown may be a bad choice but imposing it to combat Covid-19 will prove to be infinitely worse.

Japan to release treated water from Fukushima nuclear plant into the ocean: USA, IAEA support, China condemns

Japan has long delayed the decision to dispose of the wastewater from the Fukushima Daiichi nuclear plant over criticisms and safety concerns.

The direct fall-out of not implementing farm laws: Punjab Farmers say Arhtiyas asking for signed blank cheques for helping in crop procurement

Farmers across Punjab are being told by their arhtiyas to furnish "signed blank cheques" if they want to get their produce auctioned in the mandis

Recently Popular

Pfizer wanted Brazil, Argentina to put military bases, Federal reserve as collateral: Why India kept Pfizer away and how the usual suspects are wrong

Pfizer has been accused of countries in Latin America of pledging their sovereign assets, military bases and financial reserves to protect itself from any adverse fallout of the vaccine

After explosive Clubhouse confessions, Prashant Kishor starts building ground to blame only Mamata Banerjee if Bengal is lost: Here’s how

While trying to fire-fight fall-out from Clubhouse conversation, Prashant Kishor has set narrative to blame Mamata Banerjee and TMC for West Bengal loss

Attempts to draw false equivalence between the Kumbh Mela and Tablighi Jamaat congregation do not make sense: Here’s why

Attempts are being made to draw false equivalences between the Kumbh Mela and the Tablighi Jamaat congregation last year.

India has to become a ‘Hindu Rashtra’, or it will be turned into an Islamic nation by 2030: Kerala MLA

"Can we let this nation (go) to any particular community? This needs to be discussed. Somebody has to speak up," PC George emphasised.

OpIndia Exclusive: Tata Communications suffers data leak, hackers claim to have sold access to company’s servers, over 50GB data still up for sale

As per two posts by hackers on a hackers' forum, they have gained access to Tata Communications servers and sold them.

Shops burnt, stones pelted on police in Baran, Rajasthan after 3 Muslim men stabbed one Kamal Singh: What we know so far

Shops burnt, police personnel injured, stone pelting, fire department vehicles attacked in Chhabra, Rajasthan.
- Advertisement -


Connect with us