New Delhi, Nov 12 (KNN) Calling PM Modi's 'loan in 59 min'  scheme for MSMEs a scam,  Congress said the scheme has been launched in an effort to help 'friends' by promoting private and crony capitalists at the expense of public institutions.

Congress said ‘PSB loan in 59 minutes’ scheme was actually being managed by an Ahmedabad-based private company.  

The party demanded an immediate and independent judicial body probe into the scheme launched for the MSME sector by PM Modi on November 2.

Congress spokesperson Gaurav Vallabh alleged that the web portal managing the scheme is supported by public sector institutions such as SIDBI and PSU banks as partners, even though it is owned by Ahmedabad-based private company CapitaWorld Platform Pvt Ltd.

“The website asks applicants to pay Rs 1180 as service charge plus GST. If one million MSMEs apply for the same, the Company stands to gain Rs 100 crores for lead generation. This is before the banks even consider the MSME for an in-principle sanction. Should a government scheme be allowed to enrich private parties? Also, can public institutions promote a private platform and give commissions, enhanced due to the publicity done by government?”, he said.

Vallabh said Small Industries Development Bank of India (SIDBI) does not directly invest into equities but through various funds.