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LATEST NEWS UPDATES | Cong piles Gujarat firm heat on Modi

Cong piles Gujarat firm heat on Modi

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published Published on Aug 28, 2018   modified Modified on Aug 28, 2018
-The Telegraph

New Delhi: The Congress on Monday demanded that the State Bank of India declare the Gujarat State Petroleum Corporation bankrupt as it sought to puncture holes into "dream merchant" Narendra Modi's "Mr Clean" image, armed with an RBI circular on Resolution of Stressed Assets.

Senior party leader Jairam Ramesh said the February 12 Reserve Bank circular mandated that any company that owed more than Rs 2,000 crore to banks on or after March 1 this year should be declared bankrupt if it didn't pay back within 180 days.

"The GSPC has taken the biggest loan from the SBI. According to the RBI circular, the SBI should declare the GSPC bankrupt by 5pm today," he told the media.

The GSPC had borrowed and invested money in gas exploration in the Krishna-Godavari basin under the watch of then chief minister Modi, who had even promised gas on tap in his 2007 Assembly election campaign. But while the Congress tried to drum up a narrative on this issue, leaders said, off the record, that it was unlikely the SBI would declare the corporation bankrupt as the matter is in court.

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The Telegraph, 28 August, 2018, https://www.telegraphindia.com/india/cong-piles-gujarat-firm-heat-on-modi-255149


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