Saturday, December 5, 2020
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

‘King, please come back and save the country!’: Massive protests in Nepal demand the restoration of Hindu Monarchy

Hundreds and thousands of Royalists took to the streets of Nepal to demand the restoration of the Hindu Monarchy.

Rahul Gandhi tweets to fuel farmers’ protests: Here is how Congress had promised similar farm laws in 2019 election manifesto

Congress promised abolition of APMC Act and replacement of Essentials Commodities Act, 1955 in manifesto, thereby promises similar farm bills

Anil Vij tests positive for Coronavirus days after he joined third phase of vaccine trials: Here is why there is no reason to panic

As Covaxin trial is double blinded, there is 50% chance that Anil Vij got placebo in place of vaccine, and he only received one dose

TRS goes from 99 to 56 seats, BJP goes from 4 to 49: Here is why, and it is not what English media thinks

Elections to the GHMC were actually due in February of 2021 but TRS decided to pre-pone the elections by three months to gain an upper hand

NIA files chargesheet in Khalistan Liberation Front narco-terror case: Narco-terrorist Singh was using money from drug trade to strengthen KLF

Accused used to receive smuggled Heroin from Pakistan-based Jajbir Singh Samra and use proceeds to strengthen Khalistan cause

‘We will make Ravan humane, justify his abduction of Sita’: Saif Ali Khan on his role of ‘Lankesh’ in upcoming movie ‘Adipurush’

Saif Ali Khan courted another controversy recently after he revealed that the makers of his upcoming movie 'Adipurush' have decided to show 'Ravan' as humane

Recently Popular

‘We will make Ravan humane, justify his abduction of Sita’: Saif Ali Khan on his role of ‘Lankesh’ in upcoming movie ‘Adipurush’

Saif Ali Khan courted another controversy recently after he revealed that the makers of his upcoming movie 'Adipurush' have decided to show 'Ravan' as humane

How a teacher from Solapur, Ranjitsinh Disale, won the coveted Global Teacher Prize and $1 million: Here is his story

32-year-old teacher Ranjitsinh Disale won the Global Teacher prize and prize money of $1 million for his extensive work in the field of the girl child education

‘Inki aurate take-take ke bhaw bikti thi’, after justifying death threat to PM Modi, Yuvraj Singh’s father Yograj Singh humiliates Hindus

Though Yograj Singh does not explicitly mention Hindus in the videos, it is clear from the speech that it is what he meant

Ex-Indian cricketer Yuvraj Singh’s father Yograj Singh joins Farmer’s protests, justifies “Indira thok di” comment

Multiple videos of Yograj Singh, Yuvraj Singh's father, have gone viral on social media where he has been giving provocative speeches amid the ongoing farmer protests

From supporting Khalistanis to hurting religious sentiments of Sikhs: A brief intro of the new liberal favourite, Diljit Dosanjh

Singer Diljit Dosanjh has become the new blue-eyed boy of the left-liberal gang after he supported ongoing farmers protest

Watch: Angry Rajdeep Sardesai threatens to sack his staff in charge of social media for failing to link up his Instagram live

Rajdeep Sardesai had announced that he was doing a live chat on his Instagram page to discuss Hyderabad municipal election results

Indian migrants constitute the largest high-skilled diaspora in OECD countries: Reports

The OECD report further emphasised that the Indian diaspora constituted the largest high-skilled diaspora in OECD countries.

Maharashtra government confirms that Anvay Naik murdered his own mother, Arnab Goswami moves HC against charge sheet: Here are the details

Arnab Goswami has alleged that Maharashtra police filed the charge sheet by following the dictates of the state government

Assam: FIR registered against ‘Ajmal Foundation’ run by AIUDF Chief for receiving funds from foreign Islamic organisations linked to terror funding

Yesterday we reported how in a thread of Tweets LRO had accused Ajmal Foundation of receiving foreign funding to a tune of Rs 69.55 crore

Doctors advise Shiv Sena leader Sanjay Raut to talk less following angioplasty surgery

Sanjay Raut had undergone angioplasty surgery on Thursday wherein two stents were placed in his artery

Prime Minister Modi to lay the foundation stone of the new Parliament building on December 10

The construction of the new Parliament building that will commence this month, is expected to be completed in October 2022.

‘Don’t want to be controlled by high command culture from Delhi’: Aam Aadmi Party Goa founder Elvis Gomes quits

Elvis Gomes alleged that the Aam Aadmi party has lately deviated from its ideologies and has compromised on its core principles

West Bengal: Several persons injured after bombs hurled at BJP rally in West Burdwan district, BJP blames TMC for the attack

TMC denied the allegations, and said it was a staged and premeditated attack by the BJP to divert attention from 'burning' issues

Pune Mirror shuts down due to the economic crisis triggered by Coronavirus pandemic, Mumbai Mirror to relaunch as weekly

The Times Group has decided to shut down the publishing of the Pune Mirror due to the economic crisis triggered by COVID-19.

Karnataka: Journalist exposes illegal cow slaughterhouses in Hassan, Muslim mob, including several women, attack her

The woman journalist, accompanied by NGOs and police officials, visited the four illegal slaughterhouses and five cattle hoarding spots in the city.

Kerala Gold Scam: Customs Dept seeks protection from Centre for probing officers as they inch closer to ‘big names’ involved

Request for protection came as investigating team learned that probe in the Kerala Gold scam might yield some big names in Kerala Gold scam

Connect with us

245,563FansLike
493,502FollowersFollow
20,300SubscribersSubscribe