"At the Modi-Obama reception at Rashtrapati Bhawan, about two dozen industrialists had been invited and were seen standing in a queue to greet the US President. About 6 to 8 of those present collectively owe close to Rs. 3.5 lakh crore to banks, mostly PSU banks. The banking industry in India has about Rs.5 lakh crore as total capital and nearly 70% of it is exposed to just a half a dozen industrial houses. Technically, if these business houses were to go bust, 70% of India's banking capital will get wiped out. In short, they are too big to fail. So they have no worries really, as the system sustains them.
This is the real cronyism that plagues India. No less an establishment figure than the RBI Governor has already drawn the attention of the government to it. Do Narendra Modi or Arun Jaitley have the will to alter this arrangement? Lalit Modi is just a small symptom of a much bigger malaise."
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