The general impression about the case involving Vijay Mallya, who is not only a high-level corporate personality but also a Rajya Sabha MP, is that it’s a classic case of shutting the stable door after the horse has bolted ( >Editorial, April 19 ). The case is a litmus test for the Centre if it is to show this country that it is a regime that will not brook corruption.
R. Sridharan,
Chennai
Given the large sums of money lent and the ease with these were sanctioned, it is not difficult to imagine why and how Mr. Mallya was extended the loans — because of his political clout. It is also strange that a business magnate like him went into the airline business. As the well-known joke goes, “If you’re a billionaire, how do you become a millionaire? Start an airline.” This is an industry which requires very high capital expenditure but has poor returns. As far as the banks involved are concerned, they have a lot of work left in retrieving the lost amounts as well as in salvaging their image.
Varad Seshadri,
California, U.S.
Verily speaking, had the liquor baron not done the disappearing act but instead faced the charges squarely and bravely, the negative public perception against him that his profligate ways and gross mismanagement were responsible for the mess would never have arisen. If he claims that he has been gravely misunderstood, he must clear the air.
Azhar A. Khan,
Rampur, Uttar Pradesh
Even if Mr. Mallya is extradited, there is no guarantee that the loans can be recovered. The government has to act firmly if it wants to send out a clear message that it means business as far as putting an end to the burning issue of non-performing assets is concerned. At the same time, there is an urgent need to overhaul the credit granting procedures of public sector banks.
Shyami Govind,
Thiruvananthapuram
The syndrome of non-performing assets will continue to haunt banks as long as political masters and their henchmen dictate the disbursal of corporate loans. It is baffling why officials are fighting shy of making public a list of wilful defaulters. Is it because the political links errant borrowers have will come to light? How long will banks continue to suffer?
P.K. Varadarajan,
Chennai
Vijay Mallya is not so naive as to not comprehend the repercussions of serious offences of financial impropriety. But where he erred in his calculations is when he decided to leave India and then browbeat the creditors into working out a compromise. Engaging advocates and holding talks via video-conferencing have not helped his case either. The issuance of a non-bailable warrant, which may also lead to the issuance of a red corner notice, could only make things worse.
V. Lakshmanan,
Tirupur, Tamil Nadu
There is a committee in our public sector banks that looks into credit appraisal. Board-level committees examine and sanction proposals relating to big-ticket advances. The real issue is when there is back-seat driving through directors who are indebted to their political masters for their positions in the board. Moreover, during the selection process for top-level posts, candidates are often propped up by powerful corporate groups. Once in the saddle, these persons have to overlook norms. As far as publishing the list of defaulters is concerned, bringing such details under the purview of the Right to Information Act is a more viable option.
Manohar Alembath,
Texas, U.S.
A non-bailable warrant for not cooperating with the authorities and the investigation does not prove anything nor does it achieve anything. There is no substantive evidence either of any fraudulent diversion of the loans sanctioned. One is sure that if the matter of extradition comes up before the British courts, the point that will be stressed is possible torture while in detention or during interrogation in India. Considering the rather poor view Western courts and authorities have of the uprightness of Indian legal processes, and the police and their methods of investigation, it may not be a surprise if such a plea succeeds.
A.N. Lakshmanan,
Bengaluru
