Left parties on Thursday attacked the government over its move to float the LIC IPO alleging that it was a "scam" and a "sell-off". The CPI in a statement said it was a part of the "privatisation spree" of the government.

Communist Party of India (CPI) general secretary D Raja said it was a matter of regret that the BJP-led NDA government is selling off all national assets through monetisation policy and privatisation of public sector units.

He said it was a "tragedy" that those long-term assets are being sold to collect revenue to meet the current expenditure. Raja said the move was also the failure of the government to secure enough finances through either retaining the earlier higher corporate taxes or hiking them further, if necessary, to offset the heavy losses caused by rightist US-model economic policies.

The sell-offs are bound to affect the sovereignty and economic independence of country which in contrast will benefit the corporates, both domestic and foreign, he said.

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Continuing with retrograde right-wing measures, the Modi government has announced that its share capital in the country's flagship financial institution, LIC will be sold off. With such sale, 22 crore of LIC's shares are being given in private hands which will fetch about Rs 20,000 crore of revenue to the central government.

"The move is totally a retrograde one, which is against the national interests and against the interest of LIC's policy holders. The Party calls upon the government to immediately halt its privatisation spree as well as sell-off of its national assets," Raja said.

CPI-Marxist general secretary Sitaram Yechury called the move a Scam of gigantic proportions, and a mega plunder of people's resources. "LIC has been the biggest contributor funding the development of India's infrastructure. Since 1956 it contributed ? 35L Cr. Now these funds would be placed at the disposal of predatory foreign fund managers who seek private profit maximisation in stock markets of the world."

In the interest of India and our people all these questions concerning LIC IPO must be answered. The procedures adopted smack of a scam of gigantic proportions. Scrap this IPO, he tweeted.

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(Edited by : Asmita Pant)