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Rahul Gandhi Targets Modi Govt Over Debt-ridden IL&FS, Asks if LIC Money Will be Used to Pay Rs 90,000 Crore

Rahul Gandhi has Alleged that the Modi government is now trying to bail out this “favoured” company by using LIC and State Bank of India (SBI).

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Updated:September 30, 2018, 7:49 PM IST
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Rahul Gandhi Targets Modi Govt Over Debt-ridden IL&FS, Asks if LIC Money Will be Used to Pay Rs 90,000 Crore
Congress President Rahul Gandhi. (File photo: PTI)
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New Delhi: After a series of attacks over the contentious Rafale deal, Congress President Rahul Gandhi on Sunday seems to have shifted his focus to the debt-ridden IL&FS to target the Modi government.

Taking to Twitter, the Congress president on Sunday asked if Prime Minister Narendra Modi was planning to bail out the debt-laden Infrastructure Financing and Leasing Services Ltd (IL&FS) by using LIC money that is deposited by crores of commoners.

A series of defaults to the tune of Rs 90,000 crore at IL&FS, a major infrastructure financing and construction firm, have roiled the financial markets over the past month and sparked fears of a crisis in the country's non-banking financial services sector.

Attacking the NDA government over the crisis, Gandhi tweeted in Hindi alleging that when PM Modi was the chief minister of Gujarat, the company was given a “gift city” project for Rs 70,000 crore that is yet to make any progress.




He added that the Modi government is now trying to bail out this “favoured” company by using LIC and State Bank of India (SBI).

IL&FS is often called a quasi-sovereign company because the Life Insurance Corporation of India (LIC), owns a 25.34 percent stake in it.

LIC said on Friday it was willing to participate in the Rs 32,000 crore rights issue that IL&FS proposed in August, reported Reuters.

Gandhi said, “People keep their life’s savings with LIC. People trust LIC. Why should their money be used to save fraud companies?”

Congress leader Manish Tewari also attacked the government over the IL&FS crisis and called for an audit.

He wrote, “This is why IL&FS financials need to be forensically audited as Management,Principal shareholders&NDA/BJPGovt are unwilling to address THE 42,000 crore question Peruse second Graphic minutely.Rs42,000 crores was disbursed in past 4 years.Nobody knows where the money disappeared (sic)”

On Saturday, the cash-strapped company said it was planning to have a "successful" rights issue and would sell its assets to repay creditors.
| Edited by: Sanchari Chatterjee
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