‘Mallya a businessman in trouble, not a defaulter by criminal intent’
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A sand art created by Sudarsan Pattnaik pays a tribute to the frontline workers for their contribution in fight against Covid-19 at Puri beach on Saturday.
As India attempts to reboot its economy, exasperated by the Coronavirus pandemic and the ongoing lockdown, on the leitmotif of Aatm Nirbharta (selfreliant), a question becomes pertinent — how will an ill-fated economy approach its star-crossed entrepreneurs in trouble?
The government of India’s approach towards the soi-disant king of good times, Vijay Mallya, who now faces an extradition for alleged fraud and money-laundering, will define the government's relationship with big business.
The now-grounded owner of Kingfisher Airlines owed over `9,000 crore to various Indian banks, predominantly the State Bank of India, in 2016, when he fled India facing prosecution.
As Mallya learnt, even kings during good times have no friends during bad times. The entrepreneur who created a successful liquor business and a lifestyle extension — not just his hospitality or parties were sought after, even his annual calendar was an object of desire — was quickly
Vijay Mallya
downgraded in the popular narrative as a fugitive, crook and criminal.
Mallya has, however, offered to repay the amount due as of 2016, not including further claims of interests and penalties to various Indian banks, which besides SBI include Bank of Baroda, Corporation Bank, Federal Bank, IDBI Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sindh Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Reconstruction, but they have seemed recalcitrant to settle.
“Without a doubt, Indian banks should take the money and close the debt,” said Nakamotu Chakravarthy, director, Centre for Individual Liberty. “He was punished in popular narrative for his flamboyance and his daring attitude. He was unruffled and intrepid under fire. He is a great entrepreneur who failed, not a defaulter by criminal intent.”
Usharani Manne, chairperson, Ficci FLO, Hyderabad chapter, seconds this. “Embattled liquor baron Vijay Mallya has recently asked the government of India to accept his offer to repay 100 per cent of his loan dues,” she said. “Mallya has repeated his request to take his money and close cases against him. This is the right time to take the money. Punish him suitably for his misdemeanours but if banks don’t settle, they will be unfairly punishing their depositors. It is time to set an example that defaulters have to pay back first.”
It is not the case of the business community that the government and banks cosset a defaulter, but a government which means business must get on with, business-like. And allowing the return of Mallya as a businessman who failed but eventually paid his dues will help Indian economy far more than hounding him.
After all, liquor was the starting point for not only Mr Mallya, but all the governments that wanted to see the state exchequers filling again.