Take Back What’s Ours: Why Government Should Get a Stake in Companies That Don’t Repay Loans

Take Back What’s Ours: 

India’s banks have a big problem — companies take huge loans, fail to pay them back, and then those loans are “written off.” From 2014 to 2023, banks wrote off around ₹10.6 lakh crore. That’s our money — taxpayers’ money — gone.

Who suffers? Ordinary people. Every time banks lose money, the government fills the hole with public funds that could have gone to better schools, hospitals, cheaper fuel, or jobs. Meanwhile, some big companies walk away, restructure, and even keep running profitably — after leaving the public in loss.

This isn’t fair. Why should people pay for corporate mistakes (or greed), and get nothing in return?

The Simple Fix: Take Equity, Not Just Losses

Here’s the idea: whenever a company’s loan is written off, the government should automatically take 20% ownership (equity) in that company.

This means:

• If the company recovers, the government — and therefore the people — also benefit by getting dividends or selling shares for profit.

• Promoters who caused defaults won’t get off easy. They lose part of control and face accountability.

• Taxpayers finally get fairness. If public money went in, public benefit must come back.

But Won’t Government Control Mess Things Up?

Not really. With only 20%, the government gets influence, not control. To make it work smoothly:

• Experts (not politicians) could manage this stake.

• The stake can be sold back once the company is stable (say after 5–10 years).

• Only big defaults (₹100 crore and above) should qualify — so small businesses aren’t overburdened.

Even if a company collapses, owning equity still gives the government a better chance of recovering money during liquidation than under the current system.

Proof It Works

This isn’t new. During the 2008 financial crisis, the U.S. government took shares in companies like General Motors. Not only did it recover money, it actually made profits later. India already does something similar under the Insolvency and Bankruptcy Code — creditors can take ownership of failing companies. Why not extend it to written-off loans?

Why This Matters for Us

• Stops taxpayers from endlessly footing the bill for billionaire failures.

• Brings money back into people’s welfare, not into private pockets.

• Pushes companies to behave responsibly because they know default has a price.

• Makes banks and the economy stronger.

In simple words: if public money saves companies, the public must also share in their future profits. Otherwise, India is just letting its wealth slip away into the hands of a few while ordinary citizens keep paying the price.

It’s time to close the loop. If they take from the people, the people must get something back.