PM Modi benefitting 'friends' with 59-minute loan scheme: Congress


New Delhi, Nov 11(PTI): The Congress Sunday accused Prime Minister Narendra Modi of benefitting "friends" by promoting private and crony capitalists at the expense of public institutions and demanded an independent judicial probe into the new '59-minute loan scheme' for the MSME sector.

Alleging the scheme is a "scam", Congress leader Gaurav Vallabh demanded that the affairs of portal www.psbloansin59minutes.com, processing loans to small industries, be fully investigated and its contract with the government cancelled.

There was no immediate response from either the government or the PMO or the ruling BJP over the charges made by the Congress. Prime Minister Modi launched a new facility for micro, small and medium enterprises (MSMEs) alongside a slew of measures for the sector, which, Vallabh said, incidentally has been battered for a long term due to demonetisation in November 2016.

He said a platform to facilitate quick loans was launched on November 2, 2018 with "pomp and promotion show typical in nature of various types of propaganda of this government".

The Congress leader alleged that the web portal is supported by public sector institutions such as SIDBI and PSU banks as partners, even though it is owned by Ahmedabad-based private company CapitaWorld Platform Pvt Ltd. He alleged that the company is charging Rs 1,000 and another Rs 180 as GST from each small industry registered on its website and so far lakhs of entities have been "cheated" by it.

Based on the euphoric response, if 1 million MSMEs apply for the same, the said company stands to gain Rs 100 crore for lead generation, he said and asked, "Should a government scheme be allowed to enrich private parties?"

"The Congress party demands that the agreement with a private party (CapitaWorld) to 'loot' MSME sector should be cancelled with immediate effect and an enquiry on the role of Prime Minister's Office and Finance Minister in this 'massive financial fraud' should be initiated by an independent judicial body," Vallabh told reporters.

"To benefit his 'friends', Prime Minister Modi has given a contract to manage the 'www.psbloansin59minutes.com' to Ahmedabad-based CapitaWorld private limited and the company was incorporated on March 30, 2015 and as per financial year 2017 its income is Rs 15,000 odd without any operations till then," he said.

He also alleged that its chief executive officer has been a part of Modi's poll campaign in 2014 general elections, who has now been "benefitted" in this form.

The Congress leader said the company was valued at Rs 19.216 crore pre-investment as of April 2018 and based on this valuation nine entities, including SIDBI, Bank of Baroda and SBI, invested Rs 22 crore into this company for 54 pc shareholding and its post-investment valuation is Rs 41 crore.

"Why is the work of bankers being used for enriching private individuals while the nature of the work is not complex and banks have been doing the same earlier also? Vallabh said the RBI has raised red flags on bad loans, cyber security and bank frauds and such "euphoric schemes" initiated by the government is fraught with very high risks.

SIDBI has, however, claimed that CapitaWorld — the company behind the 'loan in 59 minutes' portal launched by Modi last week — is a public-sector firm. Public sector unit (PSU) institutions have an option to increase stake from 56 pc to 74 pc in the future. "A consortium of six public banks led by SIDBI held 56 pc in the fintech company Capita World which gave it a public sector character," the SIDBI tweeted.

  

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Comment on this article

  • Ahmed K. C., Mangalore

    Mon, Nov 12 2018

    59 minute loan
    If you get it after 59 minutes, no instalments to be paid.

    If your loan is not sanctioned,
    Instalment ke paise aap ke jeb me bachthe hain ki nahi ???

    DisAgree Agree [1] Reply Report Abuse

  • Indian, Goa

    Sun, Nov 11 2018

    Those who applied for the '59 Minute SME Loan' would have got an an 'in principle' sanction vide a mail. Much of it is auto generated with an algorithm doing the calculation and responding to the applicant and tagging a bank. Now to the real thing:
    1. The mail comes from a mail ID No-Reply@CapitaWorld.com.
    2. Capitaworld Platform Private Limited is a company incorporated on 30 March 2015.
    3. The company is registered in Ahmedabad, Gujarat.
    4. As of 31 March 2017, The company did not start operations and had a revenue of 15k.
    5. The signatories of the company are Jinand Shah and Vikas Shah.
    6. Another director on the board is Vinod Modha, A strategic advisor for corporates including Nirma and Mudra ( earlier Owned by Anil Ambani).
    7. All loanees have to pay Rs.1180 on application and 0.35% of the loan as processing fees.
    8. Capitaworld makes it's money from the banks who in turn load it on the customer.
    9. This Ahmedabad based private company will hold our data with serious repercussions - Net Worth, GST, ITRs etc.
    10. After March 2018, the company inducted 4 new directors. One of them, Akhil Handa ran Modi's 2014 campaign..

    DisAgree Agree [2] Reply Report Abuse

  • Vishal, Mangalore

    Sun, Nov 11 2018

    'Na khaoonga aur na khane doonga.' This slogan sounds hollow now.

    DisAgree [1] Agree [1] Reply Report Abuse

  • SMR, Karkala

    Sun, Nov 11 2018

    Prime Minister Narendra Modi on, November 2, launched a '59-minute loan' scheme for small and medium industries. Most of the media, leaders and bhakts called it the Diwali gift for MSME (Micro, Small and Medium Enterprises).
    Initial investigations have shown that contract for this scheme has been allegedly given to an Anil Ambani-linked Gujarat firm, which will charge ₹1,180 to send your file to the bank
    But, within four days of the launch of the scheme, it has been revealed that this Diwali gift is not for the industries, but for a private company in Gujarat, which is charging MSMEs ₹1,000 for an application. Even though this company is collecting all the required data from MSMEs along with the loan application, it is giving only an in-principle approval for the loan.
    Interestingly, most of the process on the website is without any human interference, i.e. auto. To obtain the approval letter, you have to pay a ₹1,000 rupeee as processing fee and about ₹180 as tax.

    • Capitworld.com was constituted on March 30, 2015
    • The company is registered in Ahmedabad.
    • The company did not initiate any work for two years after coming into existence i.e till March 31, 2017 and its total revenue was only ₹ 15,000
    • The authorised signatories of this company are named as Jinand Shah and Vikas Shah.
    • Vinod Modha, who is a director of the company, is also reportedly the strategic advisor of two of Anil Ambani’s companies, Nirma and Mudra.
    • In March 2018, four new directors were appointed to the company and one of them was Akhil Handa. He was involved in Narendra Modi’s poll campaign in 2014.
    This means that Capita world is charging processing fees of ₹1,180 and 0.35 % for just sending your application to the bank. And of course, the security of any MSME data obtained by this company is not yet known.
    Is this BJP and PM Modi's Diwali gift to the bankrupt Anil Ambani after 'Rafale jet' offset deal with 'zero' experience?
    Jai Hind

    DisAgree [2] Agree [8] Reply Report Abuse

  • KRPrabhu, Mangalore/Bangalore

    Sun, Nov 11 2018

    Let the govt implement the 59 minute MSME Loan scheme from ten lakhs to one crore.But bank managers should be facilitated with exemption of supervision ,inspection by internal/ statutory audit for such loans.Si that they can speed up the loan release to the applicants.If such loans too are subjected to inspection,audit many bank branch heads may have to. take to suicide one day.

    DisAgree [2] Agree [4] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Nov 11 2018

    Baap Ka Maal Hai Kya ...

    DisAgree [6] Agree [10] Reply Report Abuse

  • sri_elder, Karkala

    Sun, Nov 11 2018

    Congress helps only tippu jayanthi celebrators... Shameless congress...

    DisAgree [17] Agree [9] Reply Report Abuse

  • Nas, Mangalore

    Sun, Nov 11 2018

    RSS and chaddi people all benefitd congress rulling time.after aganist congress finger to other community only helping.shameless people

    DisAgree [8] Agree [9] Reply Report Abuse

  • SAHIL, MANGALURU

    Sun, Nov 11 2018

    GAURAV VALABAH YOU ARE HURTING US A LOT BUT NOT TOO MUCH LATE

    1.15 LAKHS GONE
    2.NOW AGAIN 1180RS OUR HARD EARNED MONEY

    DisAgree [1] Agree [8] Reply Report Abuse


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Title: PM Modi benefitting 'friends' with 59-minute loan scheme: Congress



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