Many to lose their life's savings: Mamata writes to PM

Kolkata: Chief Minister Mamata Banerjee on Monday sent a letter to Prime Minister Narendra Modi urging him to initiate a high-level impartial and independent probe on the sordid affairs of financial impropriety and possible misappropriation of the life savings of common people due to the Infrastructure Leasing and Financial Services (IL&FS) fiasco. Banerjee has pointed out that the IL&FS is reportedly in a debt crisis to the tune of an alarming Rs 91,000 crore.

"Such a probe and its findings must lead to the punishment of those guilty of defrauding the people and will also ensure that hard-earned savings of our common people are not further jeopardized," Banerjee wrote in her letter.

According to the Chief Minister, the debt crisis of IL&FS has put into peril the hard-earned savings of lakhs and lakhs of employees of PSUs like MMTC, IOCL, CIDCO, HUDCO, IDBI, SBI and electricity boards of Gujarat and Himachal Pradesh as well as private sector companies by way of uncertainty over provident fund and pension funds invested in the IL&FS bonds by their employers. "The position is likely to put the economy of the country into further strain and perpetrate untold hardships and insecurity in the lives of such a vast number of employees who invested their lifetime savings," Banerjee stated in her letter.

She also expressed her concern with international financial entities like Orix Corporation of Japan and Abu Dhabi Investment Authority holding large shares in IL&FS of 23.54 percent and 12.56 percent respectively. "Therefore, the debt crisis and default of IL&FS will also tarnish our reputation among global financial institutions," Banerjee wrote.

According to Banerjee, financial irregularities that have continued unabated under the Union government have placed financial security of the people in even graver danger.

"Demonetisation and hasty and unplanned implementation of GST took away livelihood of common people. Now, IL&FS financial debacle is taking away their savings," her letter stated.

Banerjee has further pointed out that the rating agencies that had given the highest level of credit worthiness to IL&FS only in June 2018 sharply dropped its rating from September 2018 when massive default of payment obligations became evident sparking panic among the equity investors.

"What I have brought to your urgent attention above, purports to not only a big hit on the lives of lakhs of employees of private and public sector enterprises, but also calls into question the role of reputed public sector financial institutions such as LIC and SBI along with the role of major credit rating institutions across the country," she wrote.