Its time banks show the boot to rogue tycoons who loot and scoot; virtually rape the economy in broad-day light and get more money in the name of re-structuring. Its time these rapists are also sent to jail.
Some time back, driving down a road in Mumbai’s Parel, I stopped by to take a close look at a curious sight. It was an array of fancy vintage cars, including, if I remember correctly, the legendary Rolls Royce Silver Ghost. They were all parked behind glass walls. It was a Sunday morning and there was no signboard on the building. At last I found the security fellow who informed me that the owner of these beauties, mostly vintage (produced before 1929) but some classic (before 1965), was none other than Vijay Mallya.
How much does this “king of good times” owe his lenders on account of his grounded Kingfisher Airlines? In 2010 it narrowly escaped going belly up due to restructuring of its debt worth Rs 7,700 crore. Two years later, Mallya was back to the table with creditors, with a further debt of nearly Rs 1,000 crore. Meanwhile even the restructured debt had doubled. The airline is not operational and the staff is not paid for ten months now. Its license has been revoked and no savior is in sight to buy out the airline with all its loans. But Mallya’s listed liquor firm, UB Spirits, has been allowed to carry out business as usual. And none of his creditors would dare take a bailiff to his museum of vintage cars, crank up the beauties on a container truck, and line them up, including the Silver Ghost, if it is there, at Azad Maidan to be auctioned off forthwith. Instead, the country is watching the spectacle of this abominable businessman making gifts of gold bricks to the god at Tirupathi!
Why can’t creditors lay their hands on Mallya’s assets other than in his damned airline? It is because of a stupid law which was in place till the other day. In popular imagination, India is a land of wicked lenders—all Shylocks—whereas borrowers are hapless victims of circumstances.