Cong, BJP in verbal duel over Yes Bank fiasco

While special PMLA court in Mumbai remanded Yes Bank founder Rana Kapoor to the Enforcement Directorate (ED) custody till March 11 on Sunday, the Congress took on the Bharatiya Janata Party (BJP) over the allegation that the private lender's bad loans increased during the Congress regime.

Congress spokesperson Abhishek Manu Singhvi said the Yes Bank's loan book increased 100 per cent in two years after demonetisation -- from Rs 98,210 crore in March 2016 to Rs 2,03,534 crore in March 2018.

On the allegation that painting of Rajiv Gandhi was bought by Rana Kapoor, Singhvi said, in 2010 a portrait of Rajiv Gandhi by M.F. Hussain was sold to Rana Kapoor for Rs 2 crore. The amount was received through cheque and was disclosed in the income-tax return of 2010 by Priyanka Gandhi Vadra, he added.

"Incidentally, only the other week, a painting by Hussain has been auctioned by the ED for Rs 13.44 crore," Singhvi said.

On Saturday citing the Finance Minister's replies in Parliament, P. Chidambaram said the amount involved in frauds in banks and select financial institutions increased from Rs 10,171 crore in 2013-14 to Rs 1.43 lakh crore in the first three quarters of 2019-20.

On State Bank of India's plan to take over Yes Bank, Chidambaram said it appeared that the SBI would invest Rs 2,450 crore to pick up 49 per cent stake in the restructured bank at Rs 10 per share (face value Rs 2).

"It's bizarre. When the net worth of the bank is perhaps zero. We will await details before making a comment," he said.

"I stated on Friday a better option would be for the SBI to take over, under orders of the RBI, the loan book of Yes Bank for Re 1 and assure depositors that their money was safe and would be returned," he said.

Simultaneously, the SBI should make efforts to recover the outstanding loans, as much as possible. IANS