Modi Cracks Whip on Lagadapati’s Lanco

Modi Government is moving swiftly to liquidate the Non-Performing Assets (NPAs) of Banks. 12 accounts totaling about 25 percent of the gross NPAs of the banking system for immediate reference under IBC. These accounts form about a fourth of the Rs 10 lakh-crore non-performing assets (NPAs).

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Former Congress MP from Vijayawada, Lagadapati Rajagopal‘s Lanco Infratech will be the first among those to face bankruptcy proceedings among the dozen. Lanco Infratech owes banks 18000 crores and its market value is at a paltry 613 crore.

The Indian banking system is being pegged back by such loans. Bad loans at state-run banks have increased by more than Rs 1 lakh crore since April 2016 to Rs 6 lakh crore as of December 31. This goes up to Rs 10 lakh crore when those of private and other lenders are added on.