New Delhi, Jun 7 (IANS): With Union Minister Arun Jaitley declaring all those who owed money to the banks have been declared insolvent and removed from their companies under the Insolvency and Bankruptcy Code, Congress leader P. Chidamabaram said on Wednesday that only Rs 1.7 lakh crore is expected to be recovered out of Rs 4 lakh crore loans involved in the proceedings.

"Out of Rs 4 lakh crore loans involved in Insolvency & Bankruptcy proceedings, only Rs 1.7 lakh crore is expected to be recovered," Chidambaram said in a tweet.

Congress President Rahul Gandhi had alleged earlier in the day that the Modi government had written off loans worth Rs 2.50 lakh crore of some top industrialists.

Jaitley had responded to Gandhi by stating in an article that the government has not waived of a single rupee due from any industrialist. "Those who owed money to the banks and other creditors have been declared insolvent and removed from their companies by IBC (Insolvency and Bankruptcy Code) enacted by Prime Minister Modi's government. These loans were given largely during the UPA government," he said.

Chidambaram, who made a series of tweets, also took a dig at government over the low growth rate of credit to industry.

"Credit to industry in 2018 grew at a grand rate of 1 per cent ! Yes, 1 per cent!...Banks will need a further Rs 60,000 crore towards recapitalisation," he said.

The former Finance Minister also said that the government's Make in India programme had failed to deliver results in defence production.

"Make in India scheme in defence production has been officially abandoned," he added.