Can a defaulter owing a public sector bank Rs. 40 crore persuade that bank to sanction him Rs. 150 crore in further loans before paying back a rupee? Can he get that bank to lower his debt to less than half of what he owed them? Can he have the terms of sanction amended repeatedly so that the personal guarantee demanded of him disappears? And can he get the bank to change the very purpose for which the loan was given?
Yes, if the defaulter is part of the United Breweries (UB) group headed by Vijay Mallya and the institution is Bank of Maharashtra (BoM). And it shouldn’t take more than two months. You can even get the first pay-out of your loan — before you have shown compliance with even its greatly weakened terms and conditions.
“There are fears within the bank that this Rs. 150 crore from BoM to a UB group company may really be about raising money for the group’s struggling airline, Kingfisher,” a whistleblower within the bank told The Hindu. “The changes in terms, conditions and purpose of the loan are worrying. And BoM might well sanction further amounts. This fund-raising drive is surely on in other banks, too. Which would explain the limited amounts from each of them.” Kingfisher has a debt of over Rs.7,000 crore and has not paid employees’ salaries for months. It has defaulted on tax payments and vendors complain of unpaid bills. BoM’s Rs. 150 crore (so far) will not dent a debt that size. But it could help raise desperately needed short-term working capital of Rs. 700-800 crore. A UB Group spokesperson, however, asserted that there was no “practice of inter-company funds diversion.”
On March 29 this year, BoM sanctioned a new loan of Rs. 100 crore to United Spirits, a UB group company. Aware that another UB Group concern, UB Engineering, still owed the bank money, BoM’s Credit Approval Committee (CAC) was initially cautious. The new loan could happen only “after repayment of full recompense amount of Rs. 40.60 crore to the satisfaction of the bank along with up to date interest in respect of dues of M/s UB Engineering Ltd ...”
By April 21, barely three weeks later, a new sanction letter had dropped mention of the Rs. 40.60 crore. Now, it was up to the bank's Recovery Department to “inform the amount of dues to be recovered from M/S UB Engineering” in line with the bank's recovery policy. By May 22, the amount sought to be recovered from UBE was down to Rs. 19.9 crore.
On March 29, the CAC had mandated that the loan to United Spirits be “utilized solely for future purchase (emphasis added) of casks (approx 1.28 lakhs) for maturation of spirits.” Also, “the bank would make payment directly to suppliers and vendors.” And no reimbursement would be allowed “in respect of assets already purchased.” This firmness, the BoM whistleblower told The Hindu, “arose from fears of the UB group diverting the money to Kingfisher.” Yet, by May 11, the firmness vanished. “Amount already spent on procurement of casks shall be allowed as margin towards promoter’s contribution,” said an amendment to the sanction. Nor would the bank deal directly with suppliers and vendors. “Necessary details such as original bills, present value of casks etc. in respect of casks already procured (emphasis added) should be obtained and held on record.” That, scoffs a banker, “means bills for stuff purchased ages ago might be used to show compliance with the loan terms and conditions. Perhaps no actual rule is broken. But the bank changing its own condition to ‘already procured,’ raises worries.”
The Hindu sent an email to BoM Chairman & Managing Director Narendra Singh, raising some of these issues. To which the Bank’s Chief Law Officer responded: “We cannot divulge any information relating to the affairs of any of our constituents.” This was “in view of the Bank’s legal obligation to maintain confidentiality and secrecy of its constituents accounts.” As required under “Section 13 of the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970.” Given that one of the queries was simply whether all RBI directives had been followed in making the loans, the secrecy argument appears redundant.
By June 21, the amended purpose of the loan read: “For CAPEX (capital expenditure) requirement of the company for ongoing expansion (total project cost Rs. 1078 crores).” The strict original purpose had been drowned in a broader project. The loans have so far seen one sanction letter cancelled and a second one amended four times.
On March 29, the bank called for a ‘Personal Guarantee’ from Mr. Mallya as part of the deal. It also sought a ‘Corporate Guarantee’ from Four Seasons Wines Ltd (a UB Group company) and from United Breweries Holdings itself. It required the “latest net worth details of Mr Mallya be obtained before disbursement and it should be satisfactory.” By April 21, the ‘personal guarantee’ condition had vanished. Nor was one required from UB Holdings Ltd any longer. A guarantee from just Four Seasons Wines would be enough.
The Bank of Maharashtra grew more generous by the week. The March 29 sanction had required Credit Reports (CRs) from all other banks dealing with the borrower company/group. (The 18-bank consortium of lenders to Kingfisher Airlines includes 14 public sector banks). This was to certify “satisfactory dealings with respective banks prior to disbursement” of the loan. By April 21, the CR was to certify “satisfactory dealings” of group companies “other than Kingfisher Airlines” with the banks, prior to loan disbursement. The new letter sanctioned a further Rs. 50 crore loan beyond the original one of Rs. 100 crore.
On May 11, the bank further amended the sanction terms. Now the borrower was only required to obtain the credit report “within 90 days from 1st disbursement.” Likewise, the borrower was given 90 days after first disbursement to produce No-Objection Certificates (NOCs) from all other banks dealing with the Group “in respect of existing working capital and Term Loan lenders.”
In other words, alleged a BoM whistleblower: “We give them money before they fulfil any loan conditions. And the Rs. 50 crore looks like a hand-out to pay off the money earlier owed. This may not end at Rs. 150 crore. There might be further loans soon.”
The April 21 sanction letter stressed that the Rs. 150 crore “should not be utilised for extending loans to subsidiary companies / associates or for making inter-corporate deposits.” It sought a ‘suitable undertaking’ from the company to this effect. “They were still worrying about diversions to Kingfisher,” says a bank official. They soon stopped worrying. By May 11, this condition was: “Waived.”
In April, the borrower was forbidden from effecting “any change in their capital structure” without “prior approval of the bank in writing.” They were not to undertake mergers, new projects or expansion without the bank’s consent. By May 11, the company was merely required to “keep the bank informed in writing” of any such changes. The Bank’s consent was no longer needed.
Replying to a questionnaire from The Hindu, a UB Group spokesperson said that “BoM sanctioned a loan of Rs 150 crores on terms and conditions comparable to loans taken by United Spirits Ltd from other nationalised banks after due negotiations.” The reply confirms that the drive involves other banks, too, (see box). Such as the Punjab National Bank. The spokesperson claimed the “sacrifice amount” made by the Bank of Maharashtra was no more than Rs. 17.43 crores and part of a legitimate one-time settlement.
Most importantly, the UB Group Spokesperson asserted that: “USL does not follow any practice of inter-company funds diversion. In particular, USL has not lent any funds whatsoever to Kingfisher Airlines.” Why, then, has Bank of Maharashtra exempted Kingfisher airlines while seeking proof of “satisfactory dealings” of group companies? The Bank’s Law Officer pleads “confidentiality and secrecy.”
“This isn’t about just one but many public sector banks, involving hundreds of crores — more public money than we know about,” says the Bank of Maharashtra whistleblower. “On the one hand, media reports speak of lenders turning the screws on Kingfisher. On the other, UB Group companies seem to be able to get money, perhaps even from the same lenders, on terms defaulters can’t get. The total amount could be startlingly large - as also the risks involved for the banks.”
“The Bank of Maharashtra has lakhs of farmers, working people and retired employees amongst its depositors,” the whistleblower added. “We are called the common man’s bank. The farmers — routinely blamed for our NPAs — today struggle to get tiny amounts as loans. But big corporations like UB get hundreds of crores in weeks in a manner most risky to the bank. And these kinds of deals won’t figure in our discussions of NPAs.”
Keywords: Kingfisher financial crisis, Vijay Mallya, UB Group
Mushtaq Ahmed Yusufi CEO of a national bank and a satirist had written in his novel Zargushast: If a small person takes a small loan from a big bank then he is at the mercy of the bank, but if a big person takes a big loan from a small bank then the bank is at his mercy. Thing have changed far beyond in the past 4 decades when Yusufi wrote this. Now even the too big to fail banks are at the mercy of barons who became rich by the courting such banks in a capitalistic economy.
Is the Bank Of M Govt bank or private owned bank, if private then the
public should withdraw their money before the bank goes insolvent and
closes with the public money and the public looses all their hard earned
savings
Disgraceful. Banks (and I can reliably speak for the public sector
banks) literally drag students to hell and back to "sanction"
educational loans. Farmers, who in the opinion of our Father
constitute the core, the backbone and in my opinion the pride of the
country, are routinely denied loans, and are pressed hard to pay back
to the point that they commit suicide. And yet we have this so-called
"Dr" "Vijay" Mallya, with goblets of dough and a pile of debt he
refuses to pay, being treated like a king by the same banks.
He is an MP. Will the Rajya Sabha institute an investigative committee
to see what is going on? Will he be deprived of his MP-ship till the
period of investigation?
No, never. This is India. Mallya will go on personally supervising
"Kingfisher Calender Girls" and having "good times". And people will
go on buying Kingfisher beer.
Many more companies in AP came up by defaulting, i dare to say by
destroying co-operative banks like this. Lanco Infratech defaulting 3000
Crores loan with ICICI.
The poor look upto Banks as saviours who not only protect their savings
but also come to their aid at the time of distress.Unfortunately the
banks have a different design;they are out to fleece the poor at the
behest of the rich.It seems the banks have become bankrupt of
conscience.
It's time statutory authorities intervene to save the masses.
With regards,
This loan case will atleast have got approval of the Management Committee of the Board at each of the stages mentioned in the article. The Management Committee normally consists of Chairman & Managing Director, one ED, one Government Director ( in Govt.service, normally from Min. of Finance ).
There are many things that wait till Presidential elections. Not only crucial bills/enactments to revive economy, but also Assam floods, drought-like situation in many parts of the country, naxalites menace etc. Just add the above to the list. It is foolish to expect the Government to act in haste especially till presidential elections.
Well, in order for the bank to roll out these kind of loans, KFA should
have submitted some collateral, why these collateral are not being taken
away. Tell him to hypothecate his liquor business as a collateral, so he
wont ruin families by selling liquor. The banks should have nationalised
the liquor business by now instead of asking him to repay his debt. How
many readers can go to the beach villa to party with the calendar girls,
when there is a loan payment overdue and the bank is about to take over
your undy?
How many questions the bank asked me when we approached for
educational loan? After reading the article I am so much upset over
these issues -the finance minister announces loan waiver scheme and
the people have developed the tendency to get all types of loan and
expect the announcement of waivers. Next persons having political
clout and corrupt officials in the banks work hand in glove and siphon
off the funds. The only good thing is to know that there is a whistle
blower and a newspaper ready to investigate the fraud and bring it to
the attention of common people.
Thank you Hindu for publishing this and I express my deep admiration for
Sainath's audacity.
The UB group seems to be in a financial mess. Its debt-equity ratio is very high. I think its a case of good money chasing bad money.The BOM would be well advised to take sufficient care to ensure recovery of its earlier loans before granting further loans.
This is yet another revealing piece by Sainath. This shows the depth
to which the rot in our systems has gone. The management of Bank of
Maharashtra is not acting on its own (though it must be feathering its
own nest in the process), there have to be political actors behind
this. And we can hope to correct that only if we can truly democratise
the political parties.
Congratulations and thanks to Sainath and the editorial group of The
Hindu.
Mr.Sainath, itz good you broke this story, But in this sector KF is just
a tip of iceberg. Who is going to bell the Maharaja! - Air India??,
Frauds and mismanagement of AirIndia. It could easily become one of the
biggest scam of the decade in Asia.
Those who are good in heart they don't have money to help others but those who are not having good heart they have lot of money. Bank should give loan to higher education students don't ask so many questions like guarantee and initial payment, If you give loan to students then you will get a stronger india and india will become developed nation before the stipulated period of 2020.
it seems BOm went for an one-time settlement with UB ,thereby sacrificing a considerbale sum. how this loan was granted to a group company which has been a defaulter and allowed largesse once
On a lighter note... With Onam around the corner in Kerala, all of Mallya sir's woes could vanish if he lowered the price of beer by Rs.6-8!!!
It does not matter whether a company is in public sector or private sector.Imagine KFA is closed Who is the loser? It is the Indian public.What happened in the case of Satyam Computers? Govt saved the company.Such a step must be taken in the case of KFA also.Govt must find out what went wrong and where the money has gone?One should not wait till all the rakes are derailed.Close supervision is necssary.Mr Sainath name deserves mention in bringing out the messs.
The way things are moving,it looks like that BOM is willingly walking into a financial mess,with prospects of Bankruptcy.It would be highly advisable for middle class deposit holders to pull out their deposits fast, before it is too late.As it appears,it is likely that the common man will have to shoulder the brunt of the impending financial disaster.
Read this article along with the Budget Proposals tabled by our learned
Finance Minister Pranab who made an allocation of close to some Rs 5000
crores in the Budget proposals to help Public Sector banks tide over the
Non Performing Assets the banks are holding. The modus operandi of how
public money is looted and diverted to these corporate entities to make
them fat. In all this game, Vijay Mallaya can boast that he is some 100
th or so richest man in India
Hats off to THE HINDU, and of course to THE WHISTLE-BLOWER. I am surprised to see that RBI has done nothing yet. Or maybe they too are heavily bribed! Who knows, its India; anything is possible here.
A nice piece from P. Sainath as usual. This is typical of BoM. I have experienced it. They deny me a mere loan of Rs. 5.50 lakh even though I have submitted full documents. It was rejected on last stage. And when I enquired the reason under RTI, I got the same answer, the secrecy rule. A man having no dues is not liable for small housing loan but a man like Mr. Mallya deeply merged in loan default can get VIP treatment. In India, everyone is equal before law but some are more equal.
Incredible work by Sainath as always, though will it stir any change or
would it go down as another op-ed among others like Motek Singh's
austerity. I hope such news reaches each and every person in India, not just
fortunate few who could read hindu. The standard of common media need
to rise to raise the common man.
Indian Banks are not safe anymore. They will fall spectacularly if this modus operandi
continues. Heads should role and an example made of these greedy and corrupt
bank CEO's. The public will think twice before depositing any money in this Bank Of
Maharashtra. It is probably prudent for people to withdraw their money from this
bank before it goes bust.
If a farmer takes out a loan for Rs. 4,000/- and shows he can sustain another loan of Rs. 15,000, then the bank would extend that loan. Add a few zeroes and you have the UB case. Now if the farmer defaults, the bank should take over his land, but that does not happen. So why this compalin about different rules for rich and poor? If UB defaults then BOM should be given an equity stake in UB. And in the case of the farmer, if he takes on additinal loans from money lenders and commits suicide, because he cannot deal with the high interest rate, the government is held responsible. That makes sense I suppose.
Poster boy of India's crony capitalism.
This shows why the Indian Economy is gasping like the western
countries... If the banks in the country resort to such modes of grey
transactions, why will not the whole economy suffer????? Rich people
enjoy lavishly and escape through NPA and the poor people take
austere measure still end up contributing to the growing Inflation...
THANKS to the whistle blower from BoM and to the Authors who brought
this up to the Media.. Hope we are not heading towards another Satyam
like fiasco..The Corporate India seem to be heading towards lots of
scrutiny than the Government of India.. Will this scrutiny happen at
all.. Mallyas... Ambanis... ?????? ENDRU THANIYUM INDHA SUDHANDHIRA
DHAAGAM!!!!!!
Kudos to Mr.Sainath for taking this up! What more can we expect from a
system which is biased towards the rich whom it treats as the mighty? I
wonder if there is ever going to be a change and the nexus between the
administration, political class and businessmen is going to be broken!
kudos to The Hindu
A great service to the nation by exposing such things.
I would suggest Mr.Sainath that he can also explore the possibility of gathering additional information on this from BOM or RBI by structuring the query in a manner in which it is not possible to reject taking shelter under Secrecy Laws.
Another Satyam/ Adidas-Reebok story in the Pipeline.
I hope this expose is read by some body from Reserve Bank of India, the banking sector regulator to investigate and ensure that those who are guilty in flouting the norms of Regulator as well as that of the banks', are punished. Great job by the whistleblower and Mr.Sainath.
Good Job !
Not Vijay Mallya, but the top management of BoM which sanctioned all these loans and concessions, thus depriving so many farmers of their lives and livelihoods, should be hanged to death. Next, all these corporate bigwigs should be flogged publicly by the farmers whose money they are stealing.
Excellent work. The Bank of Maharashtra has clearly been generous to Mr. Mallya but I don't think it is acting alone or because of his clout. There must be someone within the government facilitating the entire process in return for some pecuniary gain. A probe must be ordered to find out the real culprits.
This is how public money is evaded to build cocoons of rich people,India will always be in a developing country and never become a developed country when we have such parliamentarians.
Thanks Hindu for highlighting the issue but will something change or the culprit will get an additional loan.
P Sainath and THE HINDU can be termed as conscience of the nation. I wonder will any other media in this country (like TOI) will ever speak of this financial mismanagement and fraud in KF. Instead they sing praises about his extravagant lifestyle (so called King of Good Times).
Subsidies to Poor is loathed by one and all but incentives to Rich go unquestioned.
It is time for the bank of Maharashtra account holders/ depositors to close their accounts and move their hard earned money to other banks.If there is a run on the banks deposits and the bank faces liquidity crunch may be the bank management will come to its senses and stop this plunder of public money.It is high time reserve bank of India intervened and stopped this loot.Only when the people, who are going to suffer, if the bank fails,take things into their own hands and force the hands of the powers that be to take action things will improve otherwise this loot will continue.
This is just a tip of the iceberg.Almost all big industrialists taking advantage of Public Sector Banks and now a days RBI is also forcing PSBs to grant concessions after concessions under the grab of CDR(Corporate Debt Restructuring).RBI should have stopped debt restructuring of King fisher airlines in the first place and must not allowed the over dues and defaulted instalments instalments of Kingfisher converted into equity.
There must be a Joint Parliamentary probe into all the loans sanctioned by the banks and role played by RBI in failing to protect the interest of the depositors as mandated by RBI Act of 1935.Public sector banks also must be brought under CAG,since auditors are also hand in glove with rich industrialists in looting the public sector banks.
I strongly believe that all these things are happening to various big firms very normally, conventionally. This is how India is. I seriously appreciate the efforts of The Hindu in showing this defaults to the entire world.It would be more appreciable if The Hindu brings out more about other companies in advance so that people can be aware of these money sucking beasts.....
Bravo!!
While there is a hue and cry on farmer's loan default, Corporates get freebies. This and other corporates (like the largest company by market value) should be investigated for such practices.
Well done, "The Hindu".
Where are the regulatory aithorities now? What about the CIBIL scores and reports? Do all these apply only for "common tax paying Indian Citizens"?
India - competeing with China, trying to come out of the "developing Country" lsit... No this can never happen atleast for some more centuries.
Mr. P.Sainath Sir, why should you be surprised when the Banks throughout the world ,in the Capitalist economic system, are institutions of the Financial Elites to pump money to save the business tycoons and liquor barons whenever their business counterparts face cash-starvation. The Government of India frames tax policies and economic plans and schemes in order to look after this joint venture among the financial elites.
In 1950s itself eminent Scholar D.D. Kosambi described in his article ‘On The Class Structure of India’ in the book ‘Exasperating Essays’ ,the nature and structure of Government adopted after 1947, as “the biggest capitalist, the main banker, the greatest employer, and the ultimate refuge or ineffable solace of the bootlicking intelligentsia”. Indian democracy is a politico-financial-family business of exploiting Business Tycoons and Dynastic Political Families.
Economy has to grow by sanctioning loans. Crores worth assets this
company KFA is owning. They should fly high, then only they repay the
loans...It is like transfering credit card dues from one card to another
card.....There are several assets which could be attached after a couple
of years....this is business. Of course the Banks, especially PSU
should sanction Edu loans liberally.
While Mr Sainath's point is well taken, the lender, in this case,Bank of Maharashtra, would have been prompted by the net work of THE UB GROUP, which still commands the liquor market. BoM would have also considered all pros and cons prior to disbursing the loan. The bank would have also taken necessary precaution to ensure that it does not get the boot. One should appreciate the efforts being taken by Mr Vijay Mallya to turn around Kingfisher by churning out all avenue. Kingfisher had on its rolls staff who were very highly paid. The employees cannot repudiate this. They should stand-by the airline in this efforts to wriggle out of the present predicament.
Transparency International ranks Nigeria as the most corrupt country
in the world. But, even that country arrested a crooked businessman
like Rajinder Sethia and threw him in prison when he tried similar
shenanigans to these. And yet, in India, Vijay Mallya gets nearly four
times as much money as he is not likely to pay a public sector bank
back - is this an example of "India Shining?" Or, is it New Delhi's
intention to end up creating a record by beating Nigeria to the list
of most corrupt nations on earth? This is not just a shame, it is a
slap in the face of hundreds of millions of hard working, honest and
decent Indian citizens. The good people of India deserve better than
this from the government.
I understand why this is not raised in Parliament even by Communist MPs?
Something is fishy in King Fisher.
Although the whistle blower has done well to expose the bank's double standards, I suspect a politician's hand behind the arm twisting of the bank. The bank chairman's hands are tied. He's just been the scape goat.
My wishes to the newspaper on bringing out this - Will you guys pursue
this relentlessly ,covering it till the end !! I see only two ends -
punishing those who were involved in flexing 'power' muscles and the
officers who swayed to the tune !! The other one is - rules will be
changed to allow such 'practices' .
I request the newspaper to not allow news to die down - when a news is
reported , please ensure that the issue is closed .
It is true that when a news is reported , the investigating and
judicial agencies have to intervene to provide justice . But the
scenario has changed a lot today and news agencies like yours have to
play an enhanced role - too much to expect from a journalist ,but that
is the sorry state of affairs.
In India you can get anything done by bribe, bribe the bank mamager to get a loan, bribe the Judge to get a acquittal, bribe the insurance guy to get the insurance payment and so on...
We cannot expect an ethics based strong credit culture in an age of disintegrating values.Old generation bankers, who were strangers to the term 'NPA' managed credit risks meaningfully, in an era of modest growth with a rupee's intrinsic worth a full 100 paise, compared to the present 'high trajectory' growth era presided over by economic stalwarts, when a person spending Rs 32/- a day on essentials is not poor by any means.BOM and KF may not be an isolated case of reversal of roles by the 'Obligor' and 'Counterparty'. When Indira Gandhi nationalised banks on the grounds that vested interests milked the banking system,there was a sense of nationwide euphoria ,not knowing what was in store in the days ahead. Look at what is happening now! In this case, under intense public pressure, as usual, some sacrificial goats will get slaughtered, crores of debts will be written off like peanuts and the feat will be celebrated in a five star hotel where nothing will be available for Rs 32/-
This is called crony capitalism!
I once read a novel....... "7 Rules of Money".
One of the rule was, if want to be successful in life, then make
friendship with bankers.
Mr. Mallya has done the same.
Will the role of the top Bank of Maharashtra officials be investigated? Will such playboy crooks who loot our government institutions with such impunity but cannot pay their employees get away?
"Unapolegetic" businessman swindled shareholders, passengers & employees. Now public money is his target.
RBI rules and regulations applied on selective basis.
As always best voice of common masses is raised by Sainath sir. Kudos
to Hindu for publishing such a article.
UB group is sinking ship. It's merely surviving on account of some
tweaking of facts and figure. Company has lost more than half of its
market share. Debt is increasing precipitously. Just by diverting the
funds, taking more debt to pay debt will not help UB.
Organisation along with business acumen also needs ethics to survive in the long term. That's something can be learnt from TATA. Just by getting into showbiz, Girls, glamour party are mere facade. All these sort of flamboyance will end the organisation in naught, UB being prime example of it.
Good piece from Sainath. This is a typical case where the projects
become sick and their promoters/owners become very healthy. This
instance is not peculiar only to Bank of Maharashtra but is very
common in the Banking industry as a whole in so far as it relates to
the so called VIP customers. These things happen regularly despite
several Banking Industry watch dogs like Reserve Bank, Auditing and
Inspection Systems etc. Always Big Fish prosper at the cost of the
smaller ones but the blame and publicity for increasing NPAs are
always laid at the Small and Medium Scale enterprises and the
eternally poor farmers with meager land holdings. A detailed
disclosure of NPAs of individual banks classified sector-wise ie.
corporate, SMEs, Agriculture, personal etc as well as sanctioned
limits-wise together with their outstanding will show the correct
picture as to which class of borrowers contribute the maximum to the
NPA burden of the Banking Industry. No confidentiality is involved
here.
I applaud 'The Hindu' for its investigative journalism and its role in
exposing corruption in high places.While farmers commit suicide for
their NPAs,these high flyers get away scot-free,no matter how big their
NPAs are.There are million such cases in India and may be journals like
yours can expose such corruption in public places.Probably you can
easily employ few million 'investigative journalists' on the job.
Good work, Hindu.
If an average Joe had defaulted on a, let us say, INR 50,000 loan payment, BoM would have sent goons to beat the defaulter up, abuse his/her family in front of neighbors, stalked him/her, etc. India a super power? Not in a million years!I hope the whistleblower is safe.
Every rule,regulation,guidelines and normal banking prudence and caution seem to have been given not just a go-by but a complete full toss out the window.It is very obvious that the fact that the Chairman of the group also happens to be an RS membermay have weighed with the decisions to sink more good money after bad.And the best part is that the PM who is also the FM and is reputed to be a GREAT ECONOMIST seems to be either unaware of what is happening in the PSU Banks or is a party to the twisting of all banking norms to bail out a colleague.Kudos to the Hindu for unearthing another great scam.But I must say that it is not just enough to blow this scam but the Publication needs to take this to a logical conclusion viz.expose every person involved in this open thuggery,files cases against every Tom,Dick and Harry involved under every possible section of the IPC and pursue the cases to their logical conclusion of all the guilty and incarceration thereafter of these worthies(?).
When chidambaram can head the EGoM with his unforgivable role in 2G scam, what is
wrong if a bank sanctions additional loan to a defaulter, instead of making him the chairman of the bank to stand in line with the govt. policy. Mallya is a business-man seeking loan to improve his business and if he succeeds in his venture, previous loan he defaulted can also be recovered with interest. But what can we do with chidabaram & his likes?
If the data of sales/profits/borrowings are true I am afraid the SMEs and micro small units are just facing a unfair discrimination from Banks.
Data on borrowings don't reveal how much is short term.Assuming 80% to be short term a near Rs.11000 crore debt to generate Rs.17805 crore revenue???
he is a Rajya Sabha MP.... Power rules the roost..
Where is equality in democracy? One side of a newspaper I see news of student
committing suicide as banks refusing study loans and on the other side money
pumping into wealthy pockets who are in more debts and never paid back a rupee...
Thankyou Hindu for bringing up such ridiculous acts of banks...God save India..
..The same banks want surety and several other conditions for
sanctioning STUDY LOANS .
If you owe a small amount to the bank, then you should worry about the loan. If you owe a large amount to the bank, then the bank should worry about the loan. In this case, the latter is true.
Hats of to the courageous whistle blower. India needs many more such
brave people for any serious change to ever occur.
Why do we always need a Sainath to raise the most pertinent question. As
much as I like that there is someone at least, I'm sad why only one.
India is two parts; rich India and poor India. Rules are different for Rich and different for Poor. This news is perfect story for it and for sure, India will not develope and instead more and more farmers die due to lack of bank loans, middle and poor also suffer with Banks support Rich like this, who evade taxes and waht NOT. Thanks, Kumar.
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