State intervention sought on Reliance takeover of student loans

PMK leader Anbumani Ramadoss and VCK founder Thol. Thirumavalavan, on Wednesday, sought the intervention of the State government to stop the State Bank of India from selling student loan Non-Performing Assets (NPAs) to Reliance Asset Reconstruction Company.

In a statement, Dr. Anbumani said it had come to light that the nationalised bank has sold off NPAs worth Rs. 847 crore to Reliance.

The company, in turn, had begun asking the defaulters, many of whom are unemployed graduates, to repay the outstanding .

Dr. Anbumani urged Chief Minister Jayalalithaa to intervene in the matter immediately and suggested that the government could reimburse the loans sold off to Reliance to help the students.

Standard of colleges

Stating that the issue pointed to a larger systemic problem, Mr. Thirumavalavan said the mushrooming of substandard engineering colleges and the weak industrial growth meant lakhs of students passed out without the prospect of jobs.

He urged the State to intervene and stop the sale of student loan NPAs to Reliance ARC.