'Modi using public money to save Jet Airways' says Randeep Surjewala

The Congress on Wednesday accused Prime Minister Narendra Modi of doling out public money by directing state-run banks to bailout Jet Airways by converting its debt into equity. Randeep Surjewala raised strong objections to the proposal of a State Bank of India-led consortium of banks to the "bankrupt" private airline.

New Delhi: The Congress on Wednesday said the government intended to bring a bailout package for the cash-strapped Jet Airways - partly owned by foreign investors - using Indian taxpayers' money.

Congress spokesperson Randeep Surjewala told the media that the Modi government had asked public sector banks - State Bank of India (SBI) and Punjab National Bank (PNB) - to waive the debt on the airliner totalling Rs 8,500 crore by taking equity of Rs 1.

"Naresh Goyal, who is a London-based NRI, owns 51 per cent stakes while Etihad Airways has 24 per cent stake. It means the 75 per cent ownership is with an NRI and a foreign company," said Surjewala.

"Why is the Modi government giving a 'bailout package' to a bankrupt corporate entity like Jet Airways owned by foreign investors, out of public money, but not to India's debt-ridden farmers?"

"Will the Modi government now save every defaulting crony capitalist out of public funds? Is this the new 'Modi Model' of siphoning off public funds?" he asked.

"The PMO (Prime Minister's office) has issued two orders. It has asked the SBI and other PSU banks to waive the loan by converting it into equity of ₹1. Also, it is going to pay ₹150 for every share to Etihad.

The Congress leader alleged that this is being done without any due diligence and at a time when an investigation is underway into the financial irregularities in the beleaguered airline.