Pawan Verma raises voice in Rajya Sabha over India Inc’s Rs 5 lakh crore debt

NEW DELHI: Corporate houses owe about Rs 5 lakh crore to PSU banks, a JD(U) member said in Rajya Sabha on Thursday and particularly referred to the Adani Group, alleging that the company got “unimaginable” favours and its debt stands atRs 72,000 crore.

Raising the issue during Zero Hour, Pawan Verma contended that PSU banks are influenced to give loan to the people who are not able to repay them. “PSU banks are owed about Rs 5 lakh crore by corporate houses and of this roughly Rs 1.4 lakh crore are owed by just five companies, which include Lanco, GVK, Suzlon Energy, Hindustan Construction Company and a certain company called the Adani Group and Adani Power,” he said.

The amount owed by this group “called the Adani Group” both in terms of its long-term and short-term debt today is aroundRs 72,000 crore, he added quoting reports. “Yesterday it was mentioned that the entire amount that the farmers need to pay as crop loans is Rs 72,000 crore. The Adani Group itself owes to the banks Rs 72,000 crore,” he said.

“I don’t know what the relationship is of this government with this business house. I don’t even know if they know them, but the owner of this group (Gautam) Adani is seen everywhere the Prime Minister has gone, every country China, the UK, the US, Europe, Japan,” the JD(U) member said.

“This company has been given favours which are unimaginable. In Gujarat, their SEZ was approved inspite of the HC strictures,” Verma said. Deputy Chairman P J Kurien warned Verma against making allegations.

To this, Verma said: “I am giving you factual account. It is a High Court judgement. It was left to the state government. The UPA government had not approved it and when this government came to power it was approved.”

The JD(U) member said it does not matter if Adani has the ability to pay this amount, but in last 2-3 years, the company’s net worth has gone up by 85%.

“But, analysts say the ability of the company to keep paying the interest on its debt has come down dramatically during the course of the financial year and budget credit/brokerage credit... ranks Adani Group as the fourth most burdened house of India in business,” he added.

Inspite of this and knowing the crisis of Vijay Mallya, a loan of $1 billion was given by the State Bank of India to this very group after this government came to power, Verma claimed.