PM Modi wants to use public money to save crisis-hit IL&FS: Rahul Gandhi

The IL&FS group is facing a serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27.

PM Modi wants to use public money to save crisis-hit IL&FS: Rahul Gandhi

New Delhi: In yet another attack on Prime Minister Narendra Modi, Congress president Rahul Gandhi on Sunday alleged that the Centre is trying to use public money to clear off the debt incurred by Infrastructure Leasing & Financial Services (IL&FS) group and save the company

Calling LIC the sign of trust of the people of the country, Rahul added that people have invested their money from sheer hard work in LIC policies. The Gandhi scion hit out at PM Modi and questioned why the Prime Minister wants to use this money to conceal corruption and save traffickers. 

He took to Twitter and said, "Modi ji, your favourite private company ILFS is about to shut down. And You want to save it by using money from LIC. Why? LIC is the sign of trust of country people. People have invested their money from sheer hard work in LIC policies. Why do you want to use this money to conceal corruption and save traffickers?"

The Congress chief went on lashing out at the Prime Minister. His tweet further added, "Does ILFS stands for you as 'I Love Financial Scams'?"

The IL&FS group is facing a serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27. The crisis has triggered a massive political war of words between the ruling Bharatiya Janata Party (BJP) and the Congress. 

The IL&FS group has over Rs 91,000 crore in debt at the consolidated level. The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore rights issue.

At a meeting held earlier this month, the key shareholders of the debt-ridden company, including LIC, SBI and HDFC, had kept a pre-condition for IL&FS to raise funds through its assets or non-core businesses, before any additional money could be pumped in.

(With inputs from agencies)

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