Congress demands JPC probe into IDBI Bank sale

• Congress demands a JPC probe into the proposed sale of IDBI Bank to Fairfax Financial Holdings.

• The party alleges the Modi government is bypassing safeguards to facilitate the deal.

• Shaktisinh Gohil cites a 2003 parliamentary assurance that the government’s stake in IDBI Bank would not fall below 51 per cent.

The Congress on Monday, 2 November demanded a joint parliamentary committee (JPC) probe into the proposed sale of IDBI Bank, alleging that the Modi government was selling a profitable public sector bank to Fairfax — a corporate group close to Prime Minister Narendra Modi.

The party also accused the government of violating established rules and safeguards to facilitate the deal involving Fairfax Financial Holdings, whose chairman Prem Watsa has been a vocal admirer of Modi.

Addressing a press conference at the AICC headquarters in Delhi, Congress Rajya Sabha MP Shaktisinh Gohil said IDBI Bank, established during the tenure of former Prime Minister Lal Bahadur Shastri to promote and finance industrial development, could not be privatised.

Gohil played an old video clip of former finance minister Jaswant Singh, who had chaired the parliamentary standing committee on finance in 2003. In his speeches in the Lok Sabha on 8 August 2003 and the Rajya Sabha on 15 August 2003, Singh had assured Parliament that the government's stake in IDBI Bank would not be reduced below 51 per cent.

"Jaswant Singh had promised in Parliament that under no circumstances would the government's stake in IDBI Bank be reduced below 51 per cent. But the BJP, which now collects donations in the name of Lord Ram, is determined to break that promise and sell IDBI Bank," Gohil alleged.

Questioning the rationale behind the proposed disinvestment, Gohil highlighted the bank's profitability, arguing that there was no compelling reason to sell an institution that was performing well financially.

According to figures, IDBI Bank recorded cumulative profits of Rs 30,105 crore between 2021 and 2026. He also pointed out that the bank was among the leading lenders in terms of profit per employee, generating Rs 49.8 lakh per employee.

"In such a scenario, the question arises: why is a bank that is delivering such high profits being sold?" he asked.

Gohil further alleged that Fairfax lacked the financial capacity to acquire IDBI Bank independently and would effectively be using the bank's own resources to finance the acquisition.

Citing an investigative report, he referred to a conversation with Fairfax chairman Watsa and president Peter Clark about the funding arrangements for the acquisition. According to the account cited by Gohil, the Fairfax representatives had indicated that IDBI Bank had substantial capital and that the payment would be made in instalments, with the initial amount paid upfront and subsequent payments financed through IDBI Bank itself.

The Congress MP also sought to highlight Watsa's proximity to PM Modi, recalling his appearance at the 2017 Vibrant Gujarat summit, where he had lavishly praised Modi and compared him to Singapore's former Prime Minister Lee Kuan Yew, credited with transforming the city-state into a global economic hub.

"Perhaps because of this praise, IDBI Bank is being sold to Prem Watsa," Gohil remarked, alleging preferential treatment in the proposed transaction.

Apart from demanding a JPC investigation, Congress put forward a series of demands, calling for an immediate halt to the proposed sale of IDBI Bank to foreign companies and the public disclosure of both valuation reports prepared in connection with the transaction.

Questioning the circumstances under which the valuation was revised, Gohil demanded to know whose instructions led to the change. He also sought disclosure of the identity of the second bidder in the disinvestment process.

The Congress further demanded an explanation for the decision to settle the income tax matter after the bidding process, questioning whether the move had any bearing on the valuation or the terms of the proposed transaction.

The party maintained that the proposed sale raised serious questions of transparency, accountability and public interest, and insisted that the entire process be examined by a JPC.