Kingfisher Airlines NPA~Exposes Political & PSU Banks Nexus to Lend against Brand
It was clear to me right in 2009 itself of the danger of lending against the Kingfisher Airlines Brand
This was my Warning on July 23,2009
Thursday, July 23rd, 2009
Multiple Posts on my views on the KFA Debacle & Vijay Mallya have been categorised above under Kingfisher Airlines ~Machiavellian Mallyas
KFA was my case study at several Seminars & Workshops where I warned that it was on it’s way to becoming like Global Trust Bank that vapourised and the over 2 lakh shareholders should exit immediately and potential aggressive investors should not get seduced to buy into it !
Who will now bell the Cat and reveal why the PSU Banks actually lend to KFA,especially under the intangible Brand which Grant Thornton had valued at ,I believe US $ 750 m! ….. the Banks were unable to monetise this to recover their dues !….no surprise here at all !….makes to recall how E & Y had valued in just One Day(Company Law Board had pulled them up for this) the Properties at a value in the Satyam-Maytas Deal to fill the hole in Satyam Balance Sheet ! ….in fact the Banks even converted Part Loan to Equity at Rs 64 !
Clearly Vijay Mallya’s Proximity to Political Leaders had a hand when the Loans were given & even till date this Proximity is the reason for his continuing arrogance and brazenness ! …. his Rajya Sabha MP Candidature from Karnataka as an Independent was supported by a few Political Parties just to defeat the Nominee of another !
I can only surmise that the Glitterrati,especially those who celebrated with him his 60th Birthday in Granduer, & continue to fawn over him and defend him and his son ad nauseum in columns and on debate panels on TV News Shows have been and/or continue to be beneficiaries of his largesse with public funds,if i daresay ! ~ Nothing is Free !
Shame !!! ~on these 17 Banks & the many years it has taken them to declare KFA & Mallya as a wilful defaulter & seek his arrest….investigate who in the Banks was responsible to lend in the first place !…the truth will be revealed then as to why they lend & who made them !
Shame !!! ~ on those defending Vijay Mallya…a lawyer on a panel says to follow due process of law….another says he will pay !….if the due process of law was followed in time then Vijay Mallya would have been history by now !….the irony is that the victims,the KFA Employees ( a captain on a panel voiced this) want him free so he’s able to pay them their dues….for if he goes behind bars so goes their hopes!….a stock market scamster comes to mind who was arrested & convicted as he owed the banks heavily but has been on bail on an Apex Court Appeal now pending for years and has been able to repay the Banks despite his accounts being frozen ! ~ tacit!? …think about it !….manipulated & rigged stocks & got into trouble….then manipulated & rigged stocks again to repay !….the World is round indeed !
Shame!!! ~ on Vijay Mallya being allowed to continue as a Rajya Sabha MP ~ his term ends in a few months….he should be suspended from Parliament till he at least pays up KFA Employees…the Banks have only themselves to blame but it’s our monies lying in savings & deposits with them that were advanced to KFA & which have become irrecoverable ~ so we’ve lost while the top management in these 17 banks and their political bosses are getting away for lending to KFA ~ Yes,Get Mallya but get them too !
But who will Bell the Cat !….perhaps one of the CMDs of these 17 banks at the time of their Lending !? ~ you need to break or appeal to the conscience of only one !….as for the Regulator RBI….if they had acted in the best interests of deposit holders in the past & pulled up in time the Banks then such a dangerous NPA situation would not have plagued the PSU Banks with the feverish intensity as now
Vijay Mallya is gaming our legal system…His UB Group promoted KFA is a separate legal entity from him personally…..It is KFA that owes Bankers over Rs 7000 crs & it’s employees their salary arrears & the tax authorities TDS and Service Tax & other Creditors their dues
The Increasing Anger is when Vijay Mallya is seen flaunting his wealth in the face of all those to who KFA owes huge amounts ~ the question is should not he have the conscience to use this wealth to pay off KFA dues ,especially to his KFA Employees who stood by him and to who he gave strong personal assurances…instead of splashing on grand Parties,buying a T 20 Team in the Caribbean League & on his Formula 1 racing Team….Legally such Wealth of his may not be touched to pay off KFA Dues & he is free to spend it the way he wishes….we would not have grudged him this if his promoted KFA did not owe thousands of crs…..He’s yet hoping to settle with the banks….but what about Employees !…. At least for the time being Diageo’s US $ 75 m settlement to him has not been allowed to be released to him by DRT,Bengaluru till Bank filed cases are heard ….also the Enforcement Directorate is summoning him to question him on suspected @ Rs 300 crs of money laundering/siphoning from the reported Rs 900 crs lend by IDBI….For the time being his plans to resettle in the United Kingdom to be with his children,as he claims, have been unsettled…media has reported of two lavish luxury estates that Mallya has in the UK to which he wishes to retreat
Come on Mallya ! what conscience have you got that allows you to take US $ 75 m from Diageo while hundreds of your KFA Employees remain unpaid !? ~ What’s that you say !? ~ They are KFA Employees & not Yours ! ~
Yes,I’m Naive ! ~ I have a right to be & am exercising it because it’s the right way to be