Very interesting comments by FM Nirmala Sitharaman on ABG Shipyard Fraud of Rs.22,842 Crores!

‘ABG fraud of UPA vintage :Minister, The shipyard account had turned NPA in 2013, says Nirmala Sitharaman’(The Hindu, February 15,2022) makes interesting reading. In her retort to the Opposition parties making a hue and cry about the biggest banking fraud of Rs.22,842 crores perpetrated on banks by the company ABG Shipyard, the minister stressed that the account had turned into a nonperforming asset (NPA) in November 2013, while the UPA was still in power. It could be true. But, why did it took so long (more than eight years) for the fraud to come to light? And from 2014, NDA ,to which the Minister is affiliated to, has been in power till today. Didn’t they know about it? Did they ask the banks why it took so long to bring it to the public notice? And the interesting thing is that she makes a statement that  ‘while it normally takes 52 to 56 months to detect such bank frauds, less time was taken to detect it and take action under the present government ‘.According to reports from the press, the CBI filed an FIR only on February 7,2021.One would wonder why it takes so long for the NPAs to be  detected and the gradual developing of it into a fraud. The incident shows that there is some serious shortcomings in our banking system. Or does politics play a role in it? Rather than blaming each other(the Government and opposition), the Government  and the opposition should have discussed seriously about the steps to be taken for early detection of such frauds. After all, its public money!