Tuesday, September 2, 2014

Who has become Bakra?

Todays Times of India carried two news items. One was about United Bank of India declearing Vijay Mallya, two other directors  and KF Airlines itself Wilful Defaulters. The second news item, even more interesting  was, surprise, surprise, Vijay Mallya claiming thet UBI is making a Bakra of him to send a message to other defaulters by declearing him a wilful defaulter.

Reading the second news item I just don't know whether to laugh or cry at Mallya claiming that he has been made Bakra. Really or are they the Banks, the employees of KFA and the nation, who have been made  Bakra by 'The Games (Tricks) These People Play'?

Without going into merit of Mallya's claim as I do not know his full grounds (it could well be because of the confidence of simply haveing a strong legal team) I would like to ask, is he really being made Bakra?

The standards and the style of KFA was great (or may be pompous) but it looked unsustainable from the start in a tough aviation market. With the lavish style of the Airline, the losses mounted. Scores of KFA employees were left in the lurch by the closure of the airlines. The employees were doomed but there was no change in the lifestaule of promotors of KFA. Their F1 team and other indulgances continued.

The banking consortium seems to have fallen in a trap. It seems to be the common story of what businesses do in India. Take a loan, then seek restructuring of loan, then seek more loan claiming that with newer loans the business will flurish and the old and new both loans will be re-payed. Later claim that losses are still mounting and the loans cannot be paid hence they should be securitiesd by banks. The loans thus convert to Equity and the govt holding (through PSU Banks) keeps increasing (and the promotors share keeps declining).

After some time claim that the business is unviable and present the govt with Fait Accompli. Now govt is major stake holder and has no option to hold to this crying baby. As for promotors, there is yet another business to move on after making a Bakara of the employees, the public and the Institutions (including the govt).

And after all, in this free nation, the person being declared wilful defaulter has the option of crying foul and claiming that he is being made Bakara which is diligently used by him. That too after making Bakara of every one else.

PS. I am not a finance or law person and the views above are based on my inferences gathers from various news items appearing for and  against the promoters of KFA.

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