Chidambaram alleges BJP 'wrong approach' driven companies to insolvency

Senior Congress leader P Chidambaram Wednesday slammed the BJP-led government, saying its "wrong approach" drove companies to insolvency and said the opposition has been vindicated by the Supreme Court order on defaulters. The former finance minister also said the Congress' manifesto, released on Tuesday criticised the BJP-led government for its "one-size-fits-all approach" to the NNon-PerformingAssets problem.

"BJP government's wrong policies broke the back of companies in steel, power and coal sectors. Its wrong approach drove those companies into insolvency. "Today, we are vindicated by the Supreme Court's judgement," he said in Twitter.

The Supreme Court on Tuesday quashed the RBI's February 18, 2018 circular which directed banks to move against defaulters under the Insolvency and Bankruptcy Code (IBC) on their failure to pay up within 180 days from March 1, 2018. The apex court also quashed all IBC proceedings initiated by banks under the RBI circular against defaulters.

(With inputs from agencies.)