00:00I've got to move because I have important newsmakers lined up now, and this is with regards to the IDBI
00:05bank.
00:06A bank that was built to finance India's industrial growth is now at the center of a political showdown.
00:13The proposed IDBI bank privatization has sparked a sharp war of words between Lok Sabha LOP,
00:20Leader of Opposition Rahul Gandhi, and Finance Minister Nirmala Sitaraman.
00:24While Rahul alleges undervaluation and questions the sale of a public institution,
00:30Finance Minister Nirmala Sitaraman has hit back, blaming Congress-era crony, lending and bad loans for weakening the bank.
00:38But the confrontation goes beyond IDBI.
00:42With Rahul's earlier allegations over government interference in the Tata group also drawing a sharp response from the Finance Minister,
00:49Is this now a larger political battle over India's corporate sector, public ownership and the government's role in business?
00:58We'll be discussing that with the guests, but first up, here's what happened.
01:06A bank founded in 1964 to finance India's industrial ambitions.
01:1262 years later, a multi-billion rupee privatization.
01:15And now, a fierce political confrontation over who built it, who rescued it and who has the right to sell
01:23it.
01:25The IDBI bank divestment has triggered a fresh war of words between Congress Leader Rahul Gandhi and Finance Minister Nirmala
01:33Sitaraman.
01:34With allegations over the sale process, questions about valuation and a political battle over India's banking legacy.
01:41In a note Thursday night and then a tweet Friday morning, Rahul Gandhi accused the Modi government of selling an
01:48institution built during the Congress era,
01:51alleging fraud in the privatization move.
01:54Sitaraman responded with a sweeping attack on Congress-era banking practices,
01:59citing several cases of fraud and alleging politically influenced lending.
02:03She also blamed bad loans involving companies such as Videocon, Kingfisher and ABG Shipyard for weakening IDBI Bank while crediting
02:14the NDA government with its revival.
02:17While Rahul questioned the valuation process, the finance minister insists that all procedures were followed.
02:24To Rahul's allegations that Congress built the bank, the minister replied that it was the Modi government which revived it.
02:31Rahul said the bank was built with public money and belonged to the public.
02:35Finance minister pointed out that the bank was used by the Congress to finance its cronies.
02:41And while Rahul raised concerns over public ownership and employees,
02:45Sitaraman argues that Congress-era political interference contributed to the banking system's problems.
02:53The finance ministry had a day earlier issued a clarification over allegations that the reserve price for IDBI Bank had
03:01been removed or manipulated.
03:04In a statement Thursday evening, the ministry rejected allegations of wrongdoing,
03:08arguing that the transaction had been handled transparently and in accordance with the prescribed framework.
03:14It made it clear that the reserve price was neither lowered or raised and that the resulting bid price was
03:21increased by Rs. 3,917 crore,
03:24improving the transaction value for the government and LIC.
03:29Interestingly, the IDBI controversy is just the latest in what is turning into a wider political confrontation over the nation's
03:36corporate sector.
03:37Rahul Gandhi had earlier raised allegations of government interference in matters involving the Tata Group,
03:44questioning the relationship between political power and corporate decision-making.
03:48The finance minister had herself refuted those allegations,
03:52accusing the Congress leader of politicizing business matters and undermining confidence in Indian institutions.
03:59Bureau Report, India Today.
