Mallya finds unlikely backer in Modi Cabinet

Even as the Indian government aggressively pursues the extradition of Vijay Mallya from the UK, senior union minister Nitin Gadkari said it is unfair to dub the businessman a fraud for committing a rare default. In comments that would surprise the corporate world, banks and even his peers in the government, the road transport and shipping minister, Gadkari, said it was unfair to brand Vijay Mallya a fraud because of what he described a one-time loan default and hurdles that he faced in the airline industry.On Monday, a court in the UK ordered the extradition of the liquor baron who is wanted by Indian authorities for alleged fraud and loan defaults of Rs 9,000 crore.“40 saal Mallya regular payment kar raha tha, byaaj bhar raha tha...40 saal baad jab wo aviation mein gaya....uske baad wo adchan mein aaya to wo ekdum chor ho gaya?...jo pachaas saal byaaj bharta hai wo theek hai, par ek baar wo default ho gaya...to turant fraud ho gaya? Ye mansikta theek nahi hai!” (Mallya paid his dues and interests regularly for 40 years. Post that, he entered the aviation sector and faced hurdles..does that make him a thief? It’s fine when a person pays his dues for 50 years...he defaults once and instantly becomes a fraud! This mentality isn’t right), Gadkari said in a forum at the Times Network India Economic Conclave.He added that every business has risks and entails mistakes. But if “the mistakes are bona fide”, and if the problems are due to global recession or internal issues or industry problems, the person should be assisted.Gadkari started with a disclaimer that he had nothing to do with Mallya. He later said if Mallya had “fraud papers” to his name, he should face legal consequences.“Par jo aadmi adchan mein aata hai usko agar hum ye thappa laga dein ke wo fraud haj to hamari economy aage nahi badhegi,” (If someone’s facing a hurdle and if we stamp him as a fraud, our economy will not progress) he said.“Ek galti ka sabko adhikaar hai par wo bona fide honi chahiye” (Everyone has the right to one mistake, but that mistake should be bona fide)“Aajkal hamara jo approach hai ke har aadmi chor jai, wo nahi hona chahiye” (Our approach these days, that every man is a thief, shouldn’t be there),” he said.Mallya’s Kingfisher Airlines shut down in 2012 due to cash problems with more than Rs 8,000 crore of loans and other dues unpaid and leaving hundreds of employees without jobs. He had numerable court cases and a CBI investigation against him. He allegedly absconded from the country in March 2016, going toand parking himself in London.Gadkari later also said if banks don’t lend to industries, no project will achieve financial closure, there will be no job creation or economic growth.Asked for his opinion on the ongoing feud between the government and the RBI on the central bank’s autonomy, Gadkari said the RBI with all its autonomy was still a “part and parcel” of the government and had to abide by the finance ministry’s economic policies.“Kya 100% policy RBI banaegi aisa hai kya?” (Will RBI begin to make 100% of the policy now?”) he said, adding the government had done nothing to jeopardise the central bank’s autonomy.The RBI’s former governor Urijit Patel stepped down earlier this week, nine months before the completion of his term. He was replaced by Shaktikanta Das.

from Economic Times https://ift.tt/2UEp5SF