An English newspaper has accused the Badal Government of a 12,000 Crore Food Scandal:
The splotch of red ink on bank balance sheets is set to become bigger as a new scandal in the form of disappearing food stocks in Punjab godowns threatens to burn a Rs 12,000-crore hole in their books and embarrass the Parkash Singh Badal administration.
The Reserve Bank of India (RBI) has ordered all banks with exposure to the Punjab government’s food borrowing programme to provide for potential losses after discovering that food grain supposed to have been bought with bank funds has vanished from godowns.
At least four people familiar with the matter said RBI’s directive has alarmed banks who now have to provide at least 15% of the loans, or a total of Rs 2,250 crore, in March and June quarters.
State Bank of India, one of the lenders, has called a meeting on April 18 to discuss the issue amidst fears that the amount involved would be far higher, about Rs 20,000 crore. SBI Chairman Arundhati Bhattacharya declined comment on the issue. The RBI stance is unusual from one aspect.
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Courtesy : Economic Times