IndiaPosted at: Nov 2 2026 5:11PM


Congress seeks JPC probe into IDBI Bank sale, alleges financial irregularities and opaque valuation

New Delhi, Nov 2 (UNI) The Congress, on Monday, stepped up its opposition to the proposed privatisation of IDBI Bank, accusing the Narendra Modi government of pushing through a controversial sale to Canadian financial services company Fairfax Financial Holdings amid alleged financial irregularities, questionable valuation practices and lack of transparency.
Demanding an immediate suspension of the disinvestment process, the party called for a Joint Parliamentary Committee (JPC) investigation into the entire transaction.
Addressing a press conference, Congress spokesperson and former Rajya Sabha MP Shaktisinh Gohil alleged that the proposed acquisition raised serious questions about the source of funds being used by Fairfax to purchase the bank, claiming that resources and money belonging to IDBI Bank itself were effectively being deployed to facilitate its takeover.
Referring to discussions involving financial analyst Raman James, Fairfax Financial Holdings chairman and founder Prem Watsa and another senior company executive, Peter, Gohil claimed that the conversations had brought to light troubling aspects of the proposed financial arrangements. He alleged that the transaction presented an extraordinary situation in which the prospective buyer was using the resources of the very institution it intended to acquire.
"An institution is being bought with its own money. This is an extraordinary situation that raises serious questions about the entire transaction," Gohil said, alleging that irregularities involving thousands of crores of rupees could be involved.
Questioning the rationale behind the proposed disinvestment, Gohil recalled the historical role of public sector institutions in India's economic development. He said the establishment of public enterprises after Independence, under the leadership of the country's first Prime Minister Jawaharlal Nehru, was guided by the objective of ensuring that national resources and economic opportunities served ordinary citizens rather than being concentrated in the hands of a few industrialists.
He pointed out that the Industrial Development Bank of India was established on July 1, 1964, during the tenure of Prime Minister Lal Bahadur Shastri, to strengthen the country's industrial financing infrastructure and extend financial assistance to industries, particularly small and medium enterprises that often struggled to secure credit from commercial banks. IDBI subsequently emerged as an important institution supporting industrial expansion and manufacturing growth.
Gohil argued that the proposed sale was particularly questionable because IDBI Bank had turned into a profitable institution. Citing figures at the press conference, he said the bank had earned cumulative profits of Rs 30,105 crore between 2021 and 2026, while the government and the Life Insurance Corporation of India (LIC) continued to be its principal shareholders.
He alleged that the government was now preparing to transfer control of the bank to Fairfax for Rs 52,878 crore through the proposed sale of a combined 62.72 per cent stake held by the government and LIC, effectively ending its public sector status.
The Congress leader also questioned the valuation exercise, alleging that the government had significantly altered the assessed worth of the bank after the bidding process had begun.
According to him, an earlier valuation had reportedly placed the share price at Rs 94.42, but after bids were invited from only two prospective buyers, the government rejected the original assessment and commissioned a fresh valuation that brought the price down to Rs 75 per share.
He said Fairfax was subsequently offered the bank at Rs 81 per share, substantially below the original valuation, and demanded an explanation for the revision.
"If the earlier valuation was Rs 94.42 per share, how and why was it reduced to Rs 75? The government has not made either valuation report public. The country deserves to know the reasons behind this revision," he said.
Gohil also questioned the decision to restrict the bidding process to two prospective buyers and the government's refusal to disclose the identity and particulars of the unsuccessful bidder. He demanded that the complete bidding process, including eligibility criteria, valuation methodology and the successful bidder's financial arrangements, be placed in the public domain.
Invoking the BJP's political commitment to Lord Ram, Gohil accused the Modi government of violating an assurance given by its own former Finance Minister Jaswant Singh in Parliament in 2003 that government ownership in IDBI would never be allowed to fall below 51 per cent.
He recalled that the Parliamentary Standing Committee on Finance had recommended maintaining majority government ownership of the bank. Jaswant Singh had subsequently reiterated the assurance in the Lok Sabha and Rajya Sabha in August 2003.
Displaying a video recording of Jaswant Singh's parliamentary statement, Gohil asked why the present government was proceeding with a transaction that, according to him, contradicted the commitment made by a former senior BJP leader.
"Raghukul reet sada chali aayi, pran jaaye par vachan na jaaye. This is the principle associated with Lord Ram — a promise must be honoured even at the cost of one's life. But the BJP, which seeks votes in the name of Lord Ram, has turned its own government's parliamentary assurance into a jumla," he alleged.
The Congress spokesperson said Leader of the Opposition in the Lok Sabha Rahul Gandhi had earlier met representatives of IDBI Bank employees and raised concerns about the proposed privatisation, including through a communication to the government opposing the transfer of the institution to a foreign company. Gohil alleged that the Finance Ministry had failed to provide a satisfactory factual response to the concerns raised by Gandhi.
He also questioned the silence of the Rashtriya Swayamsevak Sangh (RSS) and the Swadeshi Jagran Manch, arguing that organisations which regularly advocate indigenous economic policies and protection of domestic enterprises should explain their position on the proposed transfer of a profitable Indian bank to foreign ownership.
Another major concern raised by Gohil was the valuation of IDBI Bank's extensive real estate holdings. He alleged that the institution possessed 29 valuable properties across major cities, whose worth had not been adequately reflected or explained in the proposed transaction.
Among the properties he cited was a 50-acre land parcel in Hyderabad's Cyber City, which he claimed had a government valuation of approximately Rs 293 crore per acre. He also referred to properties in prime Mumbai locations, including Cuffe Parade and Dadar, and questioned whether their full value had been appropriately factored into the bank's overall valuation.
The Congress leader further warned that the proposed change in ownership could have implications for employment opportunities and affirmative action. He argued that the loss of public sector status could affect reservation benefits and employment prospects for Scheduled Castes, Scheduled Tribes, Other Backward Classes, persons with disabilities and women.
Maintaining that the proposed disinvestment was not merely a financial transaction, Gohil said it could fundamentally alter the institutional character of the bank and have far-reaching consequences for its employees and the wider public interest.
He also questioned the regulatory concessions allegedly extended to Fairfax to facilitate the acquisition. Referring to Reserve Bank of India regulations governing ownership and control of banks, Gohil asked how Fairfax had reportedly been allowed a two-year window to reduce its control or shareholding in another Indian bank while pursuing the IDBI acquisition.
He sought an explanation for why similar flexibility had not been extended to other potential Indian bidders, if such concessions were permissible under the regulatory framework.
Outlining the Congress's demands, Gohil called for an immediate suspension of the proposed sale and a JPC investigation into all aspects of the transaction. The party also demanded that both valuation reports be made public, along with a detailed explanation for commissioning a fresh valuation after the bids had been opened.
Among its other demands, the Congress sought disclosure of the government's plans concerning IDBI's disputed income-tax matters and an explanation for why these issues were addressed after the bidding process. It also demanded the disclosure of the identity and details of the other bidder, besides complete transparency about the source of funds and financing arrangements through which Fairfax proposed to acquire the bank.
The party maintained that the government must answer these questions before proceeding with the disinvestment, arguing that the transfer of a profitable financial institution with a significant public sector legacy could not be allowed without parliamentary scrutiny and full public disclosure.
The allegations concerning the financing arrangements, valuation revisions, real estate assets and regulatory concessions were made by Gohil at the press conference. Their veracity, as well as the circumstances surrounding the proposed acquisition, would require examination of the underlying transaction documents and responses from the Finance Ministry, the government, the RBI and Fairfax Financial Holdings.
UNI SKA ATP AAB
Tags: #Congress seeks JPC probe into IDBI Bank sale# alleges financial irregularities and opaque valuation
More News

Army trains 50 Civil Defence Master Trainers to strengthen emergency preparedness

03 Nov 2026 | 10:08 PM

New Delhi, Nov 3 (UNI) The Indian Army has launched a joint initiative with the Directorate General of Fire Services, Civil Defence and Home Guards (DG FSCDHG) to strengthen military-civil coordination and enhance the country's preparedness to deal with emerging security challenges and emergencies.

see more..

Delhi gasps for breath as AQI touches 350, Jahangirpuri records 462

03 Nov 2026 | 10:02 PM

New Delhi, Nov 3 (UNI) Delhi’s air pollution intensified today, with the national capital recording its worst air quality as the average Air Quality Index (AQI) touched 350, placing it in the ‘very poor’ category.

see more..

Cyber-Enabled Cognitive Warfare seminar concludes in New Delhi, stresses coordinated response to emerging threats

03 Nov 2026 | 7:48 PM

New Delhi, Nov 3 (UNI) A two-day seminar on Cyber-Enabled Cognitive Warfare, organised by the Centre for Joint Warfare Studies (CENJOWS) under the aegis of Headquarters Integrated Defence Staff (HQ IDS), concluded here on Tuesday, with senior military leadership emphasising the need for a coordinated, multi-domain approach to counter emerging threats to national security.

see more..

Lawyers and Judges celebrate Deepawali Mangal Milan at Tis Hazari Court

03 Nov 2026 | 7:47 PM

New Delhi, Nov 3 (UNI) The Delhi Bar Association organised its Deepawali Mangal Milan event at Tis Hazari Courts on Tuesday, bringing together members of the judiciary and legal fraternity to celebrate the festival of lights in a spirit of unity and camaraderie.

see more..

Indigenous defence production key to military preparedness in 21st century: Rajnath Singh

03 Nov 2026 | 7:45 PM

New Delhi, Nov 3 (UNI) Defence preparedness in the 21st century is intrinsically linked to technological and industrial capabilities, with indigenous production and the ability to independently sustain critical military equipment emerging as key requirements, Defence Minister Rajnath Singh said on Tuesday.

see more..