Problem

Rs 22,000 crore loan write-offEssel Group Chairman Dr. Subhash Chandra clarifiesFor 75 years, India's banking system has run on a severe double standard. When mega-corporations default on loans worth thousands of crores, the system steps in to cushion their fall. Through bankruptcy courts and debt restructuring, these elite borrowers secure massive "haircuts" and technical write-offs, settling astronomical debts for pennies on the rupee. These losses are absorbed by public sector banks, directly wiping out public funds built on the backs of hardworking taxpayers. While corporate entities go bankrupt, the promoters frequently retain their luxurious lifestyles untouched.Conversely, the law treats the common man with absolute severity. If an ordinary citizen—whether a struggling farmer, a student with an education loan, a small shopkeeper, or a middle-class family building a home—defaults on a micro-loan, the response is swift and brutal. Banks invoke aggressive legal tools like the SARFAESI Act to bypass judicial delays and directly seize personal properties. Financial institutions deploy third-party recovery agents who harass families, issue public notices of shame, and ruin credit scores permanently. The small borrower receives no institutional waivers or state-sponsored sympathy. This financial discrimination is morally bankrupt and fundamentally unjust.We are taxpayers and voters first. We issue a strict ultimatum to all political parties—including the BJP, Congress, TMC, Samajwadi Party, AAP, and all regional factions: if you do not pass legislative reforms to end corporate immunity and establish total banking equality, we will completely withdraw our electoral support in all upcoming elections. Koi bhi government ho ya koi bhi government aaye, aapko ye maanna hi padega!bank-of-baroda-writes-off-rs-35715-crore-of-loans-above-rs-100-crore-refuses-to-disclose-big-defaulters-names-under-rti

Proposed Solution

Mandate an Absolute 50% Ceiling on Corporate Haircuts: The Government must amend insolvency guidelines to state that no bank or financial institution can accept a resolution plan or settlement haircut that exceeds 50% of the total principal defaulted amount for any account holding debt above ₹50 Crores. Public banks must stop acting as shock-absorbers for private failures.Codify Banking Equality for Small Borrowers: A statutory provision must establish absolute symmetry: if the insolvency system permits a large corporate entity to settle its debts with a specific percentage reduction, the exact same percentage reduction must be made a legal right for every educational, agricultural, MSME, and housing loan under ₹50 Lakhs.Enforce Mandatory Criminal Prosecution & Financial Exile: Any corporate promoter or director who defaults on an aggregate sum exceeding ₹50 Crores must face immediate criminal prosecution for criminal breach of trust. We demand strict financial exile (Desh Nikala) penalties: immediate passport impounding, global tracking and freezing of personal and benami assets, and a permanent ban from operating any business entity in India.Establish a Public Default Registry: Financial institutions must be barred from using secrecy clauses to hide large corporate defaults. The RBI must maintain a public, digitized, quarterly registry of all defaults and write-offs exceeding ₹50 Crores, detailing the total amount lost and naming the ultimate corporate promoters.

Decision Makers

• Smt. Nirmala Sitharaman
• Reserve Bank of India
• the Insolvency and Bankruptcy Board of India IBBI