Vijay Mallya, a businessman who fled from the country after defaulting loans, tweeted on December 5, 2018, that he is ready to pay 100% of the principal amount that is due to the banks and requested government to accept his offer. Whether this offer holds good or not in the legal framework is altogether a different debate, but what this development essentially reflects is the firmness of the present government to go behind the economic offenders. It also shows the pressure that the present government has mounted on these defaulters, so that they are reacting of their own and are ready to repay their loans as soon as possible.
See the tweet from Vijay Mallya:
How the Congress Rule Facilitated Vijay Mallya
It should be noted that all the loans taken by Vijay Mallya were under the previous UPA Government period. In fact, as reported widely, the first loan taken by Vijaya Mallya was given in the year 2004 and the second in 2008. Despite the fact that his companies were declared as NPAs (Non-Performing Assets) the loans were restructured in 2010.
See how in 2011, none other than the Prime Minister Manmohan Singh himself had said that his government committed in helping Vijay Mallya’s Kingfisher Airline.
The tweets from Rahul Gandhi’s close aide and Congress’ social media in-charge Divya Spandana, thanking Vijay Mallya for sponsoring her holiday, underlines that a close relationship existed between Vijay Mallya and the ruling Congress Party at that time.
Marked Difference Under the Modi Government
The Modi Government has been acting tough on corruption and economic offence from the day it assumed the office with the definitive measures like constitution of SIT on black money, Benami Property Act, Insolvency and Bankruptcy Code, Fugitive Economic Offenders Bill etc. You can read about these in detail in our previous article, Significant Strides Against Corruption, To a Cleaner Economy.
As far as the specific case against Vijay Mallya is concerned, it is apparent that the consistent persuasion of the law enforcement agencies built a constant pressure on him. In the previous UPA administration, Vijay Mallya was known for his lavish lifestyle despite owning several dues to the banks. Under the Modi Government, his properties are being attached and the efforts of the government are quite evident with respect to bringing the economic offenders back under the purview of the Indian courts.
As the below news article suggests that the care-free days of Vijay Mallya have passed.
Even in the case of Nirav Modi, who is evading the Indian law, there will be severe consequences on his business interests. Read about that in our previous article, ED’s Tough Action Against Nirav Modi Shows Government’s Intentions.
The Modi Government has strengthened the legal framework against the fugitive economic offenders and is pursuing this cause on a global platform. The government is on the road to ensure that the person who commits an economic offence on the Indian soil will not be able to take shelter in any other country in the future. This has been evident in Prime Minister Narendra Modi’s recent pitch in G20 Summit.
The fact that the Narendra Modi Government with its diplomatic efforts has been quite successful in the extradition of the alleged middleman Christian Michel to India, gives out a powerful message that this government is committed to bring down every person with a corruption taint to the book. We have explained the significance of this extradition in our article, AgustaWestland Case: All You Needed to Know.
All these developments under the Modi Government perhaps must have forced Vijay Mallya to start talking about repayment of his loans. It is apparent that he has got the message that there is no way out to escape from the Indian law under the current government.