'Not haircut but mundan': Congress on NCLT clearing Subhash Chandra's ₹6.5 crore payout

Congress leader Rahul Gandhi accused the Narendra Modi government of creating "two systems" in India, one for billionaires and another for everyone else, following the National Company Law Tribunal's (NCLT) approval of a resolution plan allowing businessman Subhash Chandra to settle ₹22,006 crore of debts for just ₹6.5 crore. Gandhi tweeted that NCLT stood for "Neta-Company Loot Tribunal," comparing it to a "haircut" for select elites while creditors are left with almost nothing.

Gandhi lamented that farmers are forced to auction their land for small debts, while salaried individuals face bank harassment over missed payments. However, he argued that for "friends," bank money is treated as personal property, with no repayment required.

Congress general secretary Jairam Ramesh likened the settlement to a "mundan," stating that it disrespects the Insolvency and Bankruptcy Code, 2016. He explained that a haircut is the percentage difference when a debtor repays only a portion of the owed money. Ramesh demanded that the Finance Minister reveal the amount banks have lost through such haircuts over the past 12 years, alleging it could be "upwards of ₹10 lakh crore."

Congress general secretary Randeep Singh Surjewala accused the government of giving "loan waivers of industrialists" under the guise of haircuts. He demanded disclosure of the amount lost by banks through NCLT proceedings and claimed the figure could be "upwards of ₹10 lakh crore." Surjewala questioned the necessity of NCLT proceedings given the "haircuts of 50%, 60%, 70%, 80%, 90%, now 99%."