Union Minister Nitin Gadkari has come to the defence of fugitive businessman Vijay Mallya. Considering the overall scenario, what Mallya has done is indefensible, but there is another side to every story, which is what the Union Minister has now unravelled. Speaking at a business conclave on Thursday, Gadkari said that Mallya cannot be termed a ‘fraud’ for defaulting on payments to the banks from where he took hefty loans.
This was because of two reasons; one being that Mallya had regularly repaid his loans for the past 40 years though he failed to do so after he fell into an aviation mess. The reference is to the heavy losses he incurred in running the Kingfisher airlines at a time when the aviation sector in India itself faced serious odds.
Mallya is facing extradition from the UK, based on a request from the Indian government and an order of a magistrate’s court there a week ago. It would take time for his return to India, considering the formalities involved and the possibility of an appeal. Mallya on his part has promised recently that he was willing to pay pack every penny he took from banks even as his dues are of the order of Rs 9000 crore. This offer came after the extradition of Christian Michel in the Augusta Westland VVIP helicopter case from the UAE. Mallya might have sensed that a similar scenario awaited him sooner than later. Yet, if he’s willing to pay back, what he avoided so far, he needs a favourable hearing, also considering the long years he dutifully paid his dues to banks and taxes.
It is common knowledge that things often go terribly wrong in business. As long as a businessman is willing to make amends for his wrong acts, he need not be treated as a fraud, given the circumstances under which Mallya finds himself in. This would give confidence to businesses to take risks in future. There is no business if there’s no risk. Gadkari thus has a point.
What is not justifiable on Mallya’s is for him to have fled from India when faced with a serious debt crisis. He sent the wrong signals to the banks as also the government. This is a serious matter considering that he had been a Member of Parliament. Be that as it may, the past should be past. It is also important that the government ensures that he pays back his dues to the banks since he has the resources to do so.
