Vijay Mallya's arrest sends a strong signal to wrongdoers: India Inc

MUMBAI: A section of the Indian business community views the arrest of Vijay Mallya by British police as a wakeup call for those who have the means to repay debt but don’t do so deliberately.

For some others, Mallya has been made a scapegoat even as many bigger defaulters have been allowed to go scot free. “Being a promoter does not mean you are entitled to only personal benefits. You have the responsibility and obligation to run the organisation with the highest degree of corporate governance,” said Harsh Mariwala, chairman of consumer goods firm Marico Industries. “Today errant promoters are punished by investors who watch their business closely and companies are today under pressure from advisory firms.”

“It is important for India Inc, in the current milieu, to run businesses on highest ethics and maximum corporate governance,” said Harsh Goenka, chairman of tyre-to-transmission tower maker RPG Enterprises. Some businessmen said Mallya has been punished for his flamboyant lifestyle.

“Surprisingly there are many bigger defaulters who are being let off easily … Why is Mallya being made a scapegoat?” asked one of them who did not want to be named. Some lawyers said Mallya, who was released on bail soon after the arrest, can fight the case in UK courts.

“Mallya will have the ability to access due process under the UK law, which will include a full hearing before the district court, hearing before the secretary of state, high court and the Supreme Court,” said Ramesh Vaidyanathan, managing partner of Advaya Legal, a legal firm.