The Congress party has raised questions about the transparency of the Modi government’s decision to sell a 60.72 per cent stake in IDBI Bank to Fairfax Financial Holdings. The controversy centres on the valuation process, changes in the minimum share price and possible conflicts of interest involving officials connected to the transaction.
Congress leaders have questioned why the initial reserve price of ₹94.42 per share was replaced by a revised valuation benchmark of ₹75.99 per share. They have argued that the change raises concerns about whether the bank was sold at a lower value than initially expected, with the party estimating a difference of around ₹8,800 crore.
Congress leader Rahul Gandhi has also raised concerns about a possible conflict of interest involving the Life Insurance Corporation of India (LIC). According to the allegations, one of LIC’s directors was also serving on the board of a company linked to Fairfax during the sale process. Congress has questioned whether sufficient safeguards and independent oversight were in place to prevent any conflict of interest.
The government has defended the transaction, stating that the sale process followed established procedures and involved independent valuation agencies. The Finance Ministry explained that the first round of bids did not meet the original reserve price and that a fresh valuation exercise was conducted before the final offer was accepted.
Finance Minister Nirmala Sitharaman rejected the Congress allegations and accused the party of spreading misinformation. She also pointed out that IDBI Bank had faced serious financial difficulties before the Modi government took steps to improve its financial position through recapitalisation and other measures.
According to the Finance Ministry, Fairfax’s final offer of ₹81 per share was higher than the revised benchmark of ₹75.99 per share. The government has maintained that the valuation was assessed using independent professional agencies and that the approved offer was considered reasonable.
The Cabinet Committee on Economic Affairs approved the sale of the 60.72 per cent stake to a Fairfax-backed company for approximately ₹52,878 crore on October 14, 2026. The transaction includes shares held by both the central government and LIC. However, the deal still requires regulatory approval, including clearance from the Reserve Bank of India.
The controversy has brought renewed attention to the valuation process, the role of independent agencies and the safeguards followed during major government transactions. While Congress continues to demand answers, the government maintains that the sale was conducted according to the required procedures.