‘Mallya’s 4k-cr Of­fer Shows His ‘In­ten­tion’ to Re­pay Debt’

The Economic Times - - Companies -

New Delhi: The be­lea­guered liquor baron Vi­jay Mallya’ of­fer to pay .₹ 4,000 crore out of .₹ 9,000 crore pend­ing debt con­veys his “in­ten­tion” to re­pay the loan, and the pub­lic sec­tor lenders should con­sider it care­fully, in­dus­try or­gan­i­sa­tion As­socham has said.

“The de­fault to be cat­e­gorised as “wil­ful” must be in­ten­tional, de­lib­er­ate and cal­cu­lated. Once it is es­tab­lished that the bor­rower in­tends to re­pay, the de­fault can­not be de­lib­er­ate,” As­so­ci­ated Cham­bers of Com­merce and In­dus­try of In­dia (As­socham) sec­re­tary gen­eral DS Rawat said in a state­ment on Satur­day.

With ex­ces­sive fo­cus on the “wil­ful de­fault­ers”, the In­dia Inc. is be­ing pro­jected in a bad light in the eye of the gen­eral pub­lic, whereas the fact re­mains that they con­trib­ute a large part to the coun­try’s gross do­mes­tic prod­uct (GDP) and em­ploy­ment gen­er­a­tion, Rawat said.

In busi­ness cy­cles, “dif­fi­cult times do come about. At times, the en­trepreneurs face a crisis-like sit­u­a­tion de­spite best of ef­forts,” he said.

“With so much shrill noise on the “wil­ful” de­fault­ers, the banks and the gov­ern­ment should take a dis­pas­sion­ate view of the case rather than be­ing in­flu­enced by the me­dia re­ports, which at times get ex­ag­ger­ated in the “right-or­wrong” de­bate," the As­socham sec­re­tary gen­eral added.

In the case of King­fisher Air­lines and Mallya, “let there not be a me­dia and pub­lic trial as such a thing is not good for the in­dus­try, banks or coun­try’s fi­nan­cial sys­tem,” he said.

Once it is es­tab­lished that the bor­rower in­tends to re­pay, the de­fault can­not be de­lib­er­ate: As­socham

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