CPI(M) Polit Bureau has issued the following statements on June 30

THE Polit Bureau of the CPI(M) expresses its strong condemnation of this BJP government’s decision of asking the Life Insurance Corporation (LIC) to bailout the worst NPA defaulter bank, the IDBI. 

LIC is the repository of people’s savings in the form of insurance policies. Using this capital to bailout the worst defaulter bank is tantamount to public loot of people’s savings.  The names of the rich defaulters are kept as a secret by the Modi government. Instead of recovering the loans from the defaulters, they are being bailed out by people’s savings deposited in insurance policies.

The LIC is investing Rs 13,000 crores for this takeover.  This amount should have been invested to give the policy holders a better return.  Instead, it is being used to bailout the defaulters.  This is crony capitalism of the worst kind.  The rich can loot and scoot but the common Indian will pay back their loans from their savings.

Further, the LIC is not mandated to enter the banking business.  This Modi government is forcing a sudden change in the rules. The regulatory mechanism is being destroyed by this government to protect the rich defaulters from repaying their loans. 

The Polit Bureau demands that the government should rescind this decision.