The party questions the use of bank’s funds by Fairfax to finance acquisition; demands disclosure of valuation reports
Congress Demands JPC Probe Into IDBI Sale
The Congress party has asked the government to stop the proposed sale of a 60.72% stake in IDBI Bank to Canada's Fairfax Financial Holdings and to refer the transaction to a Joint Parliamentary Committee. The demand was made on Monday, November 2, 2026, at a press conference addressed by senior leader Shaktisinh Gohil, with party communications chief Jairam Ramesh separately calling the deal a "major scam" and seeking publication of both valuation reports.
The government approved the sale on October 14 for roughly ₹53,000 crore, subject to regulatory clearances, with completion expected by the end of the current financial year.
Valuation And Funding Questions
The party's central allegation is that the buyer would use IDBI Bank's own resources to fund the acquisition. Mr. Gohil cited an exchange between an analyst and Fairfax Chairman Prem Watsa and President Peter Clarke indicating payment in instalments, with the remaining cost met from the bank's funds after an initial investment. He also questioned the revision of the bank's per-share valuation from ₹94.42, fixed before bids were invited, to ₹75 after bids were opened, even as the government describes ₹81 a share as a good outcome. The Congress has demanded disclosure of both valuation reports and the identity of the second bidder.
Why It Matters For Businesses
For legal, tax and compliance teams, the transaction raises questions about regulatory concessions reportedly granted to Fairfax, including a two-year window to reduce its stake in another Indian bank, and about the source of acquisition funds. The loss of public sector status also carries implications for reservation-based employment, which the party wants examined. Any delay or parliamentary scrutiny could affect deal timelines, approval conditions and the treatment of the bank's real estate holdings, including Mumbai properties and 50 acres in Hyderabad's Cyber City.
What To Watch Next
Mr. Gohil cited a …
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