It is a very common practice for industrialists and bureaucrats to get loans at cheaper rates from banks for a particular purpose and then diverting that money for industrial purpose and thereby getting maximum advantage by paying minimum interest. This was happening for so many years as the end use is not ascertained by the banks and thus giving scope for misusing the loan proceeds. Mallya as business magnate having the favour of most of the banks made his presence felt by siphoning over Rs.400 crores for buying properties overseas. With the result KFA incurred severe losses and finally exited out of the Airline Industry. The staff members sincerely serving an ailing airlines were made to pay for their patience and the Governments and the lending bankers have no recourse. Mallya left the country to make the matter worse and his abode abroad is a hope for his survival despite being a defaulter of bank loans. It is time that bankers pass strict norms and whereever necessary the loan proceeds can be stopped forthwith if the foul play is detected early. This step will prevent the Bizman making easy money for investments and cut short banks ultimate loss due to such bad debts. Mallya is not good enough even for one time settlement and needs to be censured and arrested at all cost to recover all dues. A stich in time saves nine is true.
S. Abhishek Ramaswamy
(The views expressed by the author in the article are his/her own.)