Can't call someone a fraud for a rare default, says Nitin Gadkari on Vijay Mallya

MUMBAI: Union transport minister Nitin Gadkari appeared to bat for fugitive businessman Vijay Mallya by saying that it is unfair to dub him a fraud for committing a rare default.

Gadkari’s remarks are likely to stir up a controversy and put him at odds with the government, which faced flak for allegedly allowing Mallya to leave the country in 2016 and is now pulling out all stops to secure his extradition from the UK. On Monday, a British court ordered Mallya’s extradition for alleged diversion of funds and money laundering.

The minister’s remarks were made at a forum in Mumbai as part of the Times Network India Economic Conclave.


“Chaalis saal Mallya regular payment kar raha tha, byaaj bhar raha tha...40 saal baad jab wo aviation mein gaya....Uske baad wo adchan mein aaya to wo ekdum chor ho gaya?...Jo pachaas saal byaaj bharta hai wo theek hai, par ek baar wo default ho gaya to turant fraud ho gaya? Ye maansikta theek nahi hai,” Gadkari said. (Mallya paid his dues and interests regularly for 40 years. After that, he entered aviation and faced hurdles. Does that make him a thief? It’s fine when a person pays his dues for 50 years ... he defaults once and instantly becomes a fraud? This mentality isn’t right.)

Gadkari added that every business has risks and entails making mistakes. But if “the mistakes are bona fide”, and if the problems are due to global recession or internal issues or industry problems, the person should be helped.

The minister started with a disclaimer that he had nothing to do with Mallya and later said the businessman should face legal consequences if he had “fraud papers” to his name.

“Par jo aadmi adchan mein aata hai usko agar hum ye thappa laga dein ki wo fraud hai to hamari economy aage nahi badhegi,” he said. (If someone is facing a hurdle and if we label him a fraud, our economy will not progress.)

“Ek galti ka sabko adhikaar hai, par wo bona fide honi chahiye.” (Everyone has the right to make one mistake, but that mistake should be bona fide.)

“Aajkal hamara jo approach hai, ki har aadmi chor hai, wo nahi hona chahiye,” he said. (Our approach these days, that every man is a thief, shouldn’t be there.)

Mallya’s Kingfisher Airlines shut down in 2012 due to cash problems with more than Rs 8,000 crore of loans and other unpaid dues, leaving hundreds of employees jobless. He faces numerous court cases and investigations by the Central Bureau of Investigation and Enforcement Directorate. The fugitive businessman, who lost the extradition case on Monday, has time till the end of the month to appeal against the UK court order.

Gadkari said no project will achieve financial closure if banks don’t lend to industries, and there will be no job creation or economic growth.

Asked for his opinion on the tussle between the government and the Reserve Bank of India over autonomy, Gadkari said RBI with all its freedom was still a “part and parcel” of the government and had to abide by the finance ministry’s economic policies.

“Kya 100% policy RBI banayegi, aisa hai kya?” he said. (Will RBI begin to make 100% of policies now?) He added the government had done nothing to jeopardise the central bank’s autonomy.

Urjit Patel stepped down as RBI governor on Monday, nine months before his term was to end. He was replaced by former economic affairs secretary Shaktikanta Das.

Gadkari also claimed BJP’s failure to retain power in Rajasthan, Chhattisgarh and Madhya Pradesh wasn’t indicative of how it would fare in the general elections next year.

“Every election has a different agenda and relevance. The state election results won’t impact our stability…Narendra Modi will become PM in 2019,” he added.