A social media post claims that RBI has waived Rs. 1073 crores loan of Jain Infra Pvt Ltd company owned by Union Home Minister Amit Shah’s son Jay Shah. Through this article, let’s fact-check the claim made in the post.
Claim: RBI waived Rs. 1073 crores loan of Jain Infra Pvt Ltd company owned by Jay Shah.
Fact: According to a RTI response, a sum of Rs. 1073 crores have been written off to Jain Infra Projects Limited. As per the information available on Ministry of Consumer affairs, Jay Shah is not featured in the list of directors of the company. Also there are no reports of associating Jay Shah to this company. There are allegations of meteoric rise in revenues and unsecured loans acquired by the company owned by Jay Shah. However, here is no mention of loan waiver or write off to this company. It is noteworthy to mention that it is not RBI who waives or writes off loans, but the concerned banks. Hence the claim made in the post is FALSE.
Back in April 2020, Saket Gokhale, a RTI user and now a national spokesperson of AITMC had shared a list of the top 50 willful defaulters which he had obtained from RBI in response to his RTI request.
As per the information shared by RBI, a sum of Rs. 1073 crores have been written off to Jain Infra Projects Limited. Most likely, this RTI revelation could be the source of the news going viral in the name of Jay Shah.
However, according to the Ministry of Corporate Affairs, Jay Shah is not featured in the list of directors of the Kolkata based Jain Infra Projects Limited. Moreover, we could not find any report associating Jay Shah with this particular company.
In 2015, CBI has registered a case against three promoters of Jain Infra Projects Limited company for defrauding banks and other charges. Status of the charges pressed against this particular company on Ministry of Corporate Affairs.
News articles have also reported about the CBI charges against the company back in 2015. These articles can be read here and here. Even these articles did not mention anything about Jay Shah or associating him with the company.
However, there were news reports alleging meteoric rise in revenues of Kusum Finserve, owned by Jay Shah, and that it acquired loans and unsecured loans. These articles did not report any instances of loan waiver/write-off to the companies owned by Amit Shah. Moreover, the company offers financial services and is not an infra company as claimed in the post.
On the other hand, it is noteworthy to mention that it is not RBI that writes off the bad loans but the concerned bank. Banks are equipped with provisions to identify and writing off bad loans or non-performing assets as per existing rules. The RBI frames rules and regulations to be followed by the bank in recognising and writing off these loans.
To sum it up, there is no evidence to link Jay Shah with Jain Infra Project Limited.
