Political use of ‘Maulana Azad Minority Financial Development Corporation’ by Congress to win elections !

Large-scale distribution of unsecured loans before the 2009 and 2014 Assembly elections!
₹158 crore pending from 43,000 beneficiaries; recovery only 12.78% !

(Report by Mr Pritam Nachankar, Correspondent, Sanatan Prabhat, Mumbai)

Mumbai, April 18 – The ‘Maulana Azad Minority Financial Development Corporation’, established for the economic development of backward minorities, was used by Congress to win elections. Before the 2009 and 2014 Assembly elections, Congress distributed unsecured loans on a large scale through the corporation among minorities, especially Muslims.

This information has been obtained by ‘Sanatan Prabhat’ correspondent Mr Pritam Nachankar under the Right to Information Act. Since 2001, only 12.78% of these loans have been recovered so far. finanfinan

The corporation was established in 2000. In 2001–02, loans worth ₹74 lakh were given to 201 individuals. No loans were distributed between 2002–03 and 2006–07. In 2007–08, loans worth ₹90 lakh were given to 205 individuals, and in 2008–09, ₹65 lakh 8 thousand to 147 individuals. However, before the 2009 Assembly elections, the distribution increased 68 times, and loans worth ₹46 crore 69 lakh 56 thousand were distributed to 13 thousand 696 individuals. Thereafter, distribution reduced until 2013–14; however, before the 2014 Assembly elections, loans worth ₹44 crore 14 lakh 40 thousand were distributed to 11 thousand 36 individuals.

Loan waiver after coming to power in 2009!

After returning to power in the October 2009 Assembly elections, the Congress–NCP alliance issued a Government Resolution on November 17, 2009, waiving all loans taken up to March 31, 2007, along with interest. ₹17 crore 22 lakh from the State treasury had to be spent for this waiver. In the 2014 Assembly elections, the alliance was defeated and the Shiv Sena–BJP alliance came to power. Had the alliance come back to power, the remaining loans would also have been waived!

Loan distribution despite the lack of recovery!

After the alliance government came to power, in 2015–16, loans worth ₹11 crore 34 lakh 40 thousand were distributed to 2 thousand 837 individuals, and in 2016–17, ₹18 lakh 97 thousand to 42 individuals. However, after it became clear that recovery was not happening, the distribution of these loans was halted in 2017.

In fact, ever since the educational loan scheme was started by the corporation, recovery has not been happening; yet the Congress alliance distributed these loans on a large scale during election periods. Even after coming to power, despite the poor recovery conditions, the alliance government continued large-scale distribution for one year.

Borrowers do not have money in their accounts! – Maulana Azad Financial Development Corporation


To recover the loans, the corporation has appointed recovery teams; however, officials stated that borrowers have cited reasons such as ‘there is no money in our accounts’, due to which there are limitations in recovery.
Overall, recovery of loans from thousands of beneficiaries has become a headache for the corporation, and the Board of Directors is preparing to send a proposal for loan waiver to the Government. Therefore, there is a possibility that the burden of this largesse distributed by Congress through educational loans to secure Muslim votes may once again fall on the public.