The
case of the flamboyant pariah
They say he vanished
overnight, got the notice for look against him changed from ‘detain’ to ‘inform’
at the immigration and flew out with his over sized bags and his girlfriend in a
hurry to his second home London. They say he is an absconding borrower who owes
crores to the Banking system in India and the Government of India. They say he
borrowed merrily to finance his business and keep alive his lifestyle. They
even say he laundered money and is guilty of fleecing the system.
The accounting regulators
have even said he is guilty of wrong accounting practices including transfers
from his profit making Flagship Company to ailing Kingfisher and other
subsidiary companies. His assets were put up for auction including by now the
ridiculously valued Kingfisher airline brand which was once valued at nearly Rs.4000
crores.
Today he is fighting
his extradition against a formidable vicious consortium of Indian Banks and a
politically charged Indian Government turning the once flamboyant businessman
into a pariah.
On the question of
fugitives there are worse offenders holed up in their safe confines in England enjoying
governmental patronage and clinging on to the textbooks of English law, making
extradition almost impossible. Turning Vijay Mallya into another of them is
disrespecting the man for his contribution to the economy and the labour force
of the country.
What is the man’s crime?
They say he is absconding with money borrowed from the Banking system in India
and refuses to repay it even when he is worth it. They say he owes the banking
system an enormous Rs.9000 crores, though the borrowed amount is only Rs.4000
crores and the total amount includes interest and interest on interest.
Ask any banker worth
his salt and he will vouchsafe for the fact that the amount in contention can
easily be settled. Mr. Mallya had initially offered to a one time settlement
(OTS) of Rs.4000 crores which was rightly turned down by the consortium of
banks. However what followed belies all imagination and judicious thinking.
Instead of coaxing him into a settlement the consortium of banks and the
Government of India jointly forced him to flee.
Consider the fact that
this is the man who took over the reins of business at a young age of 28 when
his father suddenly passed away. From there on he expanded and provided
employment to generations of Indians. Employment with the UB Group was
considered as secure as a government job. Salaries were fixed to match
inflationary pressures and the necessity for savings in a normal household.
Seniors were considered for their long association and increments the norm
though the HR metrics were always in play.
When he was in charge
no one feared losing their job under normal circumstances, and a job was
considered as a social obligation of business, not a valve that could be turned
off or on at the pleasure of the management. He was an old style businessman
who valued association with his employees and encouraged a large brood of
satisfied employees.
However he made a
cardinal business judgmental error by insisting with Kingfisher even when it
was draining him off his resources. Today the employees wish Mr. Mallya could
come back and take charge, for he created a satisfied employee and rode his
brands like a true ‘King of good times’.
What prevents the
Government and the consortium of banks to go for a negotiated settlement
instead of hounding him in London courts? Why are other major defaulters not
being hounded in the same manner? Why is a man who provided growth to the
economy and raised the social standard of his employees made to eat humble pie?
Why are the politicians
who ran Air India not being hounded for accumulating losses of Rs.52000 crores
and why was Spicejet given a lease of life even when it could not afford to
clear its oil bills amidst cancelled flights? Why are the largest defaulters in
the Banking system given new contracts and their insolvency and inability to
pay not being publicized?
Mr. Mallya still has
the potential to repay his dues in a settled manner and make a comeback; the
question is will he? After all the humiliation and more, does the government of
the day fear this? As far as the employees of the erstwhile UB Group are
concerned he will always remain their king of good times.
7th December
2017
NB:
(This article lay in cold storage for almost 2 years due to personal reasons- However the facts do not change much even as of today)