Exposing the Chinese modus operandi through a special mention in the House on Wednesday, Dr Narendra Jadhav, a nominated member and a former Planning Commission member, claimed China deployed its multinational firm Alibaba to secure a Non-Banking Financial Company (NBFC) licence in India after buying up a majority stake in Paytm.

New Delhi : China is out to destroy India’s economy, taking advantage of a policy decision of the Modi government. A top economist in the Rajya Sabha sought an immediate action to stop China in its track from “a surreptitious financial aggression into India’s sovereignty before it is too late.”

Exposing the Chinese modus operandi through a special mention in the House on Wednesday, Dr Narendra Jadhav, a nominated member and a former Planning Commission member, claimed China deployed its multinational firm Alibaba to secure a Non-Banking Financial Company (NBFC) licence in India after buying up a majority stake in Paytm.

Once Alibaba gets a foothold, other Chinese multinationals will flood, he feared. “If Chinese multinationals are allowed to dominate the Indian financial services sector, they will gain access to private and financial data of millions of individuals and corporates, inevitably exposing India to a serious geo-political risk and make our country vulnerable to external influence, thereby compromising national security.”

Jadhav asserted that the Chinese multinationals are out to capture a large chunk of India’s domestic lending market through the NBFC route “by resorting to predatory pricing and capital dumping” and it will be too late unless the government and the Reserve Bank of India take immediate action.

His concern is over the current Foreign Direct Investment (FDI) policy that allows 100% foreign investment in NBFCs under the automatic route.

“This policy of unfettered foreign ownership and control of our NBFCs can possibly destroy the strong fabric of our financial services sector and must, therefore, be critically reviewed without any further loss of time,” he said, calling for the government and the RBI to “critically review” the FDI regulations for investments in NBFCs.

The government did not react to the serious warning of Dr Jadhav it nominated to the Rajya Sabha, nor did the ruling BJP members shared his concern, perhaps because of the public perception that Prime Minister Modi backed Paytm attacked by him.

How can they forget the full-page advertisement in many newspapers with Modi’s photograph on the very day his demonetisation was effected in November 2017, the Congress leaders asked. Paytm gained the most and became popular since those days of the cash-less electronic transactions.

The BJP MPs pretended to be oblivious to Dr Jadhav’s warning, except for their ally Janata Dal(U)’s Harivansh who joined a dozen MPs from other parties to immediately associate with his submission. They included Digvijay Singh, P L Punia and B K Hariprasad of Congress, Sukhendu Sekhar Ray and Manish Gupta of Trinamul Congress, Jaya Bachchan, Ravi Prakash Verma and Neeraj Shekhar of Samajwadi Party, and Sanjay Singh, Narayan Das Gupta and Sushil Kumar Gupta of Aam Aadmi Party (AAP).

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