Finally the known economic offender of India, Vijay Mallya, who always put up an arrogant face in front of Indian authorities and remained in an illusion that London will protect him, has crumbled. He seems to have realized that India has changed under Mr Modi and cannot be fooled nor bribed the way he may have done with the previous governments. Perhaps he sees his days in U.K. are numbered and has offered to pay off his bank loans and the money he owes to the now defunct King Fisher airlines employees.
Prior to fleeing India in 2016, Mallya made number of lofty claims and false promises, and after leaving India he turned more arrogant thinking he would keep managing the show as usual. Britain, which apparently still harbors hopes to remote control India through its friends in almost all anti-Modi political parties, gave him shelter and British courts gave him all sorts of undue benefits of doubt despite India’s vigorous push to extradite him.
His recent letter to the Prime Minister of India Narendra Modi claims he is willing to pay what he owes. This is yet another false attempt to save his face when the world knows how he has no other choice but surrender and pay. Congratulations to Mr Modi and his strong force of committed officers who have been handling Mallya and other offenders like Nirav Modi et al. There is another type of offenders who live in India in the name of country’s loyal citizens and protectors but whose anti-India actions speak for themselves.
What made Vijay Mallya finally crumble? Does he mean what he says or is he buying time and trying to deceive as much as he can? Even if he wants to pay, does he have the authority over his so-called assets in India?
Also, how much should he pay back? It is certainly not only the bank loans and employees salaries. What about the cost India incurred during this whole process and what about the financial loss and mental stress thousand of people suffered due to his dishonesty? These are some of the questions the government of India will have to look into.
This is what he claims: “UBHL and myself have filed an application before the Hon’ble Karnataka High Court on June 22, 2018, setting out available assets of approximately Rs. 13,900 crores. We have requested the Courts permission to allow us to sell these assets under judicial supervision and repay creditors, including the Public Sector Banks such amounts as may be directed and determined by the Court.” (Source)
Mallya has recently made a remark stating why he made his letter to PM Modi public. He says it is to find out whether there is a political agendam apart from money. The question is, what has his fraud to do with politics? He took public money years back and fled to UK much later when he realized that the Modi government wasn’t going to be his puppet and when he saw that bribes were not going to work in this case. In reality, by making his letter to the PM public all that he seems to have done is tried to get some publicity.
Here are the four pressing reasons why Mallya crumbled and is talking of paying back.
1. The Insolvency and Bankruptcy Code (IBC) passed: The IBC came into effect in mid 2017. The most important feature of the Code, as this PRS summary points out, is that it creates a time-bound insolvency process for individuals and companies. Recently, reports of the first insolvencies completed have also started to come in pointing to the fact that it is working.
2. The Economic Offenders Ordinance and the Benami Transactions (Prohibitions) Act: Both of these are now legal realities. In fact, as this report says, Vijay Mallya was the first person to be declared an economic offender, and his properties had been attached by the Enforcement Directorate (ED) in 2016. This means that not only can the state attach assets of Vijay Mallya, as it has, Mallya can’t even save them through benami means.
3. Passport revoked: Mallya’s passport was revoked on the request of the ED back in 2016 thus severely limiting his avenues to plan a possible escape to.
4. Extradition case heading to a conclusion: Mallya is currently fighting an extradition case in the UK in which the final hearing is to be on 31 July. Recently, in another case, the UK High Court had ordered Mallya to compensate 13 Indian banks for the legal proceedings which they are pursuing against him. (Source)
It is clear that although Mallya is hoping for a come back, he has too little left to his credit. His past good karma that have been protecting him seem to be running out very quickly. The speculations as to which political party allowed Mallya to swindle 1000s of cores from Indian banks is set to come to an end. It is also a fact that political parties will twist the stories and attempt to blame the other party but at the end what speaks is the result, and that is, the Narendra Modi government has shown how determined it is to bring justice to such habituated economic offenders. Keep up the good work.
India needs to be much cleaner if it aims to reidentify as Bharat and lead the world. Only economic strength is not enough to provide a strong leadership. For that India will have to revive its ancient cultural and moral values. Without good ethics there is little use of economic growth and so-called education. Recognizing this simple truth is the key to world peace.