New Delhi, Jun 30 (UNI) The Communist Party of India-Marxist (CPI-M) and its General Secretary Sitaram Yechury on Saturday condemned the insurance regulatory body IRDA’s decision to asking Life Insurance Corporation (LIC) to bailout the state owned IDBI, and demanded that the Government should rescind this decision.

The Insurance Regulatory and Development Authority of India (IRDAI) board meet on Friday approved the proposal to buy up to 51 percent stake of the debt-ridden IDBI.

In as strong worded statement, the Polit Bureau of CPI(M) alleged that the regulatory mechanism is being destroyed by the Modi Government to protect the rich defaulters from repaying their loans.

“LIC is the repository of people's savings in the form of insurance policies. Using this capital to bailout the worst defaulter bank is tantamount to public loot of people's savings”, said the Left party.

Mr Yechury also criticised the move and said the Modi Government is bailing out rich defaulters by diverting people's money.

“LIC is public money. Why no recovery of loans from rich defaulters? Cronyism of the worst kind by the Modi government. Rich can loot and scoot, the common Indian will pay back their loans”, said the party general secretary in a tweet.

He added that LIC is not supposed to be in banking and added that “it is being forced by suddenly changing rules. Regulatory mechanism being destroyed by Modi government so that defaulters don't have to repay. What is going on?”

The CPI(M) further alleged that the names of the rich defaulters are kept as a secret by the Modi government.

“Instead of recovering the loans from the defaulters, they are being bailed out by people's savings deposited in insurance policies”, it said.

The Left party pointed out that the LIC has to invest Rs. 13,000 crores for this takeover.

“This amount should have been invested to give the policy holders a better return.Instead, it is being used to bailout the defaulters” it said.

Further, the CPI(M) said that the LIC is not mandated to enter the banking business, but the Modi government is forcing a sudden change in the rules to help the rich defaulters.

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