[Marxistindia] Stop Rewarding Wilful Defaulters at the Expense of Ordinary Taxpayers

[news from the cpi(m)]

August 28, 2026

 

Press Statement

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

 

Stop Rewarding Wilful Defaulters at the Expense of Ordinary Taxpayers


The Polit Bureau of the CPI(M) stated that the approval by the National
Company Law Tribunal (NCLT) of a repayment plan of a meagre Rs. 6.5 crore
against claims of Rs. 22,006.57 crore involving Zee Group Founder and
Chairman Subhash Chandra, is a mockery of the principles of fair justice. 

 

Subhash Chandra is known for his close ties to the BJP and the Sangh
Parivar. The order is a clear exhibition of the class bias of the Tribunal
and it violates the cardinal judicial principle of rule against bias. In
this preposterous instance, the lenders will suffer a loss of 99.97 per
cent; the settlement for LIC Housing Finance with a claim of Rs. 1,322.39
crore has been approved at a payment of a mere 0.028 per cent, or Rs. 38
lakh. 

 

It is a matter of grave concern that the Tribunal's decisions show a
consistent pattern in which large corporations are repeatedly allowed to
siphon off huge amounts of public money.  Wilful defaulters are allowed to
make windfall gains by a pliant Government, allowing them to make humongous
borrowings; and a few years down the line the NCLT settles their debt with
massive discounts like in the present case.  

 

Such largesse comes at the expense of taxpayers and small depositors. Why
should ordinary taxpayers pay for the wilful default by big corporations?
Politically influential crony capitalists are being handed out huge credit
and then bailed out in the name of a 'haircut'. Far from a prudent economic
option, such largesse seems like a magnanimous reward for services rendered
to the ruling party.

 

In India, thousands of indebted farmers, agricultural workers, women and
daily wage workers are forced to die by suicide due to inability to repay
loans. When the poor and the marginalised default in repayment of small
amounts, they face threats, intimidation, humiliation and eviction.
Household debt according to RBI is at an all-time high of 45.5 per cent of
the Gross Domestic Product (GDP). Loan waivers to farmers have often been
questioned as imprudent policy while thousands of crores are being waived
for corporate cronies. An RTI reply from Central Bank of India brings out
the stark fact that Loan Recovery Rate is 74 per cent for the small borrower
(Rs.1 crore and below) and only 14.5 per cent for the big borrowers (Rs.100
crore and above).

 

The CPI(M) demands that the NCLT order be reversed and the Union Government
stop its policy of rewarding wilful defaulters at the expense of ordinary
taxpayers. 

 

 

(Muralidharan)

For CPI(M) Central Committee Office

 

 

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