Finance Minister Nirmala Sitharaman on Friday responded to Congress leader Rahul Gandhi’s criticism of the proposed IDBI Bank sale, saying the lender was handed over to the Narendra Modi-led government in poor financial condition. She accused successive Congress governments of exerting political pressure on banks to extend loans to businesses with links to influential political figures.

The exchange comes a day after Rahul Gandhi opposed the government’s decision to sell IDBI Bank to Canadian company Fairfax. The Congress leader questioned why a bank that had returned to profitability was being sold and raised concerns about the future of its employees, reservation policies and the government’s reduced ownership.

In a post on X, Sitharaman alleged that IDBI Bank had been compelled to extend loans to several large business groups with connections to Congress leaders. She named Videocon, Winsome, ABG Shipyard and Kingfisher, saying the loans subsequently turned into bad debts and caused substantial losses to the bank.

Defending the NDA government’s handling of the lender, the Finance Minister said it had been revived through professional management, prudent lending practices and recapitalisation of more than Rs 25,000 crore.

“IDBI Bank is now poised for its next phase of growth,” she said, adding that all due procedures had been followed in the bank’s strategic restructuring.

Sitharaman cites instances of alleged political interference in banking

The Finance Minister also accused the Congress of treating public sector banks and financial institutions as personal entities, alleging that political influence had been used to bypass established lending practices.

To support her argument, Sitharaman referred to several incidents from different periods of Congress rule.

She cited the 1957 Haridas Mundhra episode, alleging that LIC funds were extended to him under the influence of Congress leaders.

She also referred to the removal of State Bank of India chairman R.K. Talwar in 1976 during Indira Gandhi’s government. According to Sitharaman, Talwar was removed after resisting political pressure to relax lending conditions for a company associated with Sanjay Gandhi’s circle.

The Finance Minister further alleged that Sanjay Gandhi had pressured the Central Bank of India over loans to Maruti.

She also named former Minister of State for Finance B. Janardhana Poojary, alleging that he pressured bank employees to issue loans during the 1980s.

Another instance she mentioned involved former UPA minister Pawan Kumar Bansal, whom she accused of pressuring Canara Bank to extend loans to businesses linked to his family.

Taking a swipe at the Congress, Sitharaman said the practice of influential people using political connections to obtain bank loans was over. She maintained that ordinary citizens now had easier access to credit and bank employees were no longer under pressure to approve loans through political recommendations.

Why Rahul Gandhi is opposing the IDBI Bank sale

Rahul Gandhi had criticised the government’s decision to sell IDBI Bank in a post on X on Thursday, arguing that the institution was established during Congress rule to support India’s industrial development.

He questioned the government’s approach to public sector banking, contrasting the establishment of banks during Congress rule with their proposed sale under the Modi government.

Gandhi also shared a letter addressed to IDBI Bank employees, expressing support for their concerns over the transaction.

Recalling his meeting with a group of bank employees at Parliament House in March last year, the Congress leader said they had questioned why the government wanted to sell a lender that they had helped turn profitable.

He credited the employees for the bank’s financial recovery and questioned the rationale behind its proposed sale.

Gandhi also raised concerns about the government’s commitment to maintaining its ownership in IDBI Bank.

He said Parliament had been assured in 2003 that the government would retain at least 51 per cent ownership in the bank. While acknowledging that the commitment was not written into law, he described it as a promise made to Parliament and the people.

The Congress leader further questioned the implications of private ownership for reservations for Scheduled Castes, Scheduled Tribes and Other Backward Classes, along with the service conditions of bank employees.

He argued that public sector banks should remain instruments of nation-building rather than being treated as assets for sale.

A helicopter carrying six people, including the pilot, crashed near Joshimath in Uttarakhand’s Chamoli district on Friday while travelling from Badrinath to Dehradun. The aircraft had initially been reported missing after losing contact while flying over the Joshimath valley.

Uttarakhand Chief Minister Pushkar Singh Dhami confirmed the crash near Chaien village, close to Joshimath. He said a joint rescue operation had been launched involving the district administration, disaster management department and the State Disaster Response Force (SDRF).

The helicopter was operated by Trans Bharat Aviation and was carrying five passengers and one pilot. The aircraft was travelling from Badrinath to Sahastradhara in Dehradun.

Helicopter loses contact near Joshimath

According to the Uttarakhand Civil Aviation Development Authority, the helicopter, bearing registration number VT-HCX, took off from Badrinath at approximately 1:14 pm on Friday.

The aircraft lost communication while flying over the Joshimath valley. Its tracking system also stopped registering its location, leaving authorities unable to establish its whereabouts.

Following reports of the missing helicopter, search teams were deployed in the region. Smoke was subsequently spotted near Chaien village, raising concerns about a possible crash.

Six people were on board

According to the Uttarakhand Civil Aviation Development Authority, six people were travelling on the helicopter, including the pilot, Captain Himanshu.

The five passengers were identified as Prathapa, Arun, Shankar Gowda, Sudheer K and HS Natraja.

Chief Minister Pushkar Singh Dhami said he was continuously monitoring the situation. He also directed officials to airlift seriously injured people to higher medical centres for treatment.

Army, SDRF join rescue operation

Rescue teams from the district administration, Army, police and SDRF were deployed to locate the helicopter and assist those on board.

Medical personnel were also sent to the area as authorities intensified their efforts.

The rescue operation faced difficulties due to adverse weather conditions, including rainfall and low cloud cover, which affected visibility in the mountainous region.

As a precautionary measure, the entire fleet of Trans Bharat Aviation Pvt Ltd was grounded, according to the Uttarakhand Civil Aviation Development Authority.

The rescue operation was underway as authorities worked to establish further details about the crash and the condition of those on board.

Delhi’s business community has appealed to senior Congress leader Sonia Gandhi to postpone the INDIA bloc’s proposed rally scheduled for November 1, warning that the event could disrupt commercial activity worth Rs 10,000-12,000 crore across 20 major markets in the national capital.

The Chamber of Trade and Industry (CTI) has written to Sonia Gandhi, requesting that the rally at Ramlila Maidan be rescheduled until after the festive season. The traders’ body has raised concerns over the possible impact of large crowds, traffic restrictions and vehicle movement on wholesale and retail markets during the crucial Diwali shopping period.

According to the traders’ association, the rally is expected to attract around 10 lakh people and 15,000-20,000 vehicles, potentially creating significant congestion in central Delhi.

Why Delhi traders want the rally postponed

CTI chairman Brijesh Goyal has highlighted the importance of the November 1 date for businesses, as it falls just days before Dhanteras and Diwali.

Dhanteras will be observed on November 6, followed by Diwali on November 8 and Bhai Dooj on November 10. Traders generally witness increased customer activity in the days leading up to these festivals.

The association has warned that traffic restrictions, road closures and parking difficulties could affect the movement of goods and customers, potentially disrupting business across several commercial areas.

The traders’ body has specifically raised concerns about markets surrounding Ramlila Maidan, where a large number of wholesale and retail establishments operate.

20 major markets could face disruption

According to the CTI, nearly 20 major markets in Delhi could be affected by the rally because of their proximity to Ramlila Maidan.

These include Chandni Chowk, Sadar Bazar, Chawri Bazar, Khari Baoli, Bhagirath Palace, Kashmere Gate, Karol Bagh and other prominent commercial areas.

The association has pointed out that these markets attract traders and buyers from different parts of the country. Any disruption to road connectivity and transportation could affect the movement of goods as well as customer footfall.

The traders have also expressed concern about the possible impact on people travelling through Old Delhi and New Delhi railway stations, which are located near the rally venue.

Traders cite previous losses due to protests

The CTI has also referred to business disruptions caused by earlier protests and traffic restrictions in central Delhi.

According to the traders’ body, demonstrations and road closures in October had already resulted in estimated business losses of around Rs 3,000 crore.

The association has warned that a much larger gathering on November 1 could cause further disruption at a time when businesses are preparing for the festive shopping rush.

It has maintained that its appeal is not against the right to hold peaceful political demonstrations but is intended to protect traders and their livelihoods during an important business period.

The association has requested the Congress leadership to consider holding the rally after the festive season instead.