Politics · India Bureau
Congress demands JPC inquiry into IDBI Bank privatisation deal
The opposition party has raised concerns over the valuation methodology used in the sale of IDBI Bank to Fairfax India, questioning how the acquirer financed the transaction. Congress has called for a joint parliamentary committee probe and demanded full disclosure of valuation reports.
LSN India ·
Congress has escalated its scrutiny of the IDBI Bank privatisation process, seeking a parliamentary investigation into the sale to Fairfax India Holdings on grounds of alleged valuation irregularities. The party has specifically questioned the financial engineering involved in the transaction, raising concerns about how Fairfax utilised the bank's own funds to support its acquisition bid.
The opposition has demanded immediate disclosure of all valuation reports prepared during the divestment process, arguing that transparency in such matters is essential to safeguard public interest. Congress claims the acquisition structure warrants close examination to determine whether the terms were favourable to the government and taxpayers who held stakes in the state-owned lender.
The privatisation of IDBI Bank, completed in 2023, marked a significant milestone in the government's divestment agenda but has periodically attracted political scrutiny. The Congress contention relates to the methodology adopted to determine the sale price and the subsequent use of IDBI's assets in facilitating the takeover, issues the party believes merit independent parliamentary scrutiny.
The government has previously justified the sale as a prudent decision aimed at improving operational efficiency and strengthening the bank's financial position. However, the continued questioning underscores ongoing debate around public sector divestment processes and the need for robust institutional oversight in major asset sales.