NEW DELHI: The Congress on Saturday posed questions to the government related to transparency and conflicts of interest amid the IDBI Bank sale row, asking why such concerns arise with "almost every" major government deal under the Modi dispensation.

Congress general secretary (in-charge Communications) Jairam Ramesh said the IDBI, established on July 1, 1964, was envisioned by the then-finance minister TT Krishnamachari (TTK) and played a historic role in providing financial assistance to the private sector and accelerating India's industrial development.

Furthermore, it contributed significantly to the creation of key institutions such as SIDBI, EXIM Bank, the NSE, SEBI and NSDL, the Congress leader said in his post on X.

"What is the justification for selling an institution with such a historic legacy -- one that recorded a profit of nearly Rs 10,000 crore in the last financial year -- to the Canadian firm Fairfax?" he said.

Ramesh claimed the recent investigations by Businessworld have brought to light significant revelations that raise serious questions regarding this decision by the Modi government.

"Gurumoorthy Mahalingam, an independent director at LIC, served simultaneously on the boards of both LIC and Thomas Cook India -- a company controlled by Fairfax -- for a period of seven months. During this time, LIC initiated the process of selling its 30.24% stake in IDBI, while Fairfax was among the bidders for the bank," he said, citing the media report.

Pointing out that Mahalingam was also a member of LIC's Investment Committee, Ramesh alleged that this presents a clear case of a potential, serious conflict of interest.

"The government has offered a vague explanation, but it fails to address concerns regarding Mahalingam's dual role, the conflict of interest, or the future of IDBI's employees. It also fails to explain the urgency behind selling a public sector bank that has returned to profitability," Ramesh said.

Claiming that the issue extends beyond IDBI, Ramesh said it raises a broader question as to why concerns regarding transparency and accountability arise with almost every major government deal under the Modi administration.

"Who is making the decisions in these major government deals? Whose interests are being protected? Do regulatory bodies and public institutions retain their independence?

"Are potential conflicts of interest investigated? Is there a complete, public record available regarding valuations, the appointment of advisors, and the decision-making process? And most importantly: is Parliament merely being presented with decisions, or does the government also acknowledge its accountability to it?" he said.

On Friday, Leader of Opposition in Lok Sabha Rahul Gandhi had also questioned the government's decision to sell off the profitable public bank to the Canadian firm, after which Finance Minister Nirmala Sitharaman had accused him of spreading "lies" on the issue and asserted that all due process has been followed in the IDBI Bank strategic restructuring.

She alleged that the Congress used banks and financial institutions as "personal entities" and pressured bank employees to extend loans at their whim, bypassing prudent lending norms.

Sitharaman said, "IDBI Bank was handed over to us in poor shape, as IDBI itself was forced to lend to large business groups with close connections to @INCIndia leaders such as Videocon, Winsome, ABG Shipyard, and Kingfisher."

"These turned into bad loans, causing huge losses for IDBI Bank, which we recognised," she said in a social media post.

"The NDA govt led by Hon'ble PM Shri @narendramodi revived the IDBI Bank through professionalism, prudence and recapitalisation of more than Rs 25,000 crores.

"The IDBI Bank is now poised for its next phase of growth," the Finance Minister said.

Posing questions to the Modi government and demanding answers, Ramesh on Saturday asked why the minimum price for IDBI shares, initially set at Rs 94.42, was subsequently reduced to Rs 75.99.

How did it come to pass that the bank was sold for approximately Rs 8,800 crore less than the minimum price the government itself had established, and at whose behest and for what reason did this happen, he asked.

"Why, and under which rules, was the minimum price altered on the very day that Fairfax's bid was opened? Did those who determined the new price already know the value of the bid submitted by Fairfax?" Ramesh said.

At the time LIC was selling its stake in IDBI to Fairfax, one of LIC's directors also served on the board of a company belonging to the Fairfax group, the Congress leader said and asked why this did not constitute a clear conflict of interest.

"Furthermore, why were ten former government and regulatory officials appointed to companies within the Fairfax group after the sale process for IDBI had commenced? Have these appointments been investigated, and if so, by whom?" he said.

"Justice must not only be done; it must also be seen to be done. But when serious questions remain unanswered, when there is no sign of an independent investigation into conflicts of interest, and when the decision-making process lacks transparency -- where, then, is the impartiality?" Ramesh said.

The government on October 14 approved the sale of a 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for about Rs 53,000 crore (USD 5.5 billion), in what would be the largest foreign investment in an Indian bank and a major milestone in the country's long-delayed banking privatisation drive.

The strategic transaction of the IDBI Bank is expected to be completed by the end of the current financial year, subject to regulatory clearance from the Reserve Bank of India.