Action against Vijay Mallya will have chain reaction, says INBEF

Moneylife Digital Team 09 March 2016

According to the bank employees union, action against liquor baron Mallya will definitely have a chain reaction and the state machinery will have to take similar steps against all wilful defaulters of banks

The Indian National Bank Employees' Federation (INBEF), banking wing of INTUC (Indian National Trade Union Congress), has demanded state machinery to take appropriate steps to prevent Vijay Mallya from leaving the country after creating a non-performing asset (NPA) of about Rs7,000 crore in nationalised banks and also recover the public fund from the assets created by him. Any action against the UB group chief will have a chain reaction, the bank employees' union says.

"We are of the firm opinion that the action on the liquor baron (Mallya) will definitely have a chained reaction in as much as the state machinery shall have to take similar steps in case of all wilful defaulters. Though the steps initiated by Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are encouraging, lot more has to be done and swords are needed to be more sharpened against such defaulters before it is too late. Detailed investigation is also needed into why banks took so long for any action (against defaulters) and officials responsible for the delay, also should be booked," Subhash Sawant, General Secretary, of INBEF said in a statement.

He said, "It is also a welcome feature that other bank unions like the All India Bank Employees' Association (AIBEA) are demanding action against Mallya. However, it also raises a question as to why unions are a passive onlooker when INBEF was bleeding due to unwarranted attacks of the bank managements."

According to the statement, on 10 December 2014, INBEF had filed a public interest litigation (PIL) in Bombay High Court about rising NPAs in public sector banks. "However, other bank unions have not come forward and given any support in the Court matter," Sawant added.

He said, "We feel that till date the bank unions have the capacity to confront the conspiracy of unscrupulous borrowers and a section of corrupt bank officials combined and stop unabated looting of public money. We also need to ask as to what the workmen directors, representing unions, were doing on the bank boards, when such doubtful loans were being doled out.” It is a fact that bank unions have workmen directors on bank boards, but very few of them, if any, have raised their voice or recorded dissenting notes.

Last week, INBEF held a dharna at Jantar Mantar in New Delhi for several long pending demands as well as for introducing an agriculture loan restructuring policy for farmers. Prashant Bhushan, senior counsel at the Supreme Court, while congratulating INBEF for taking up the issue of the recovery of NPAs of banks, criticised functioning of the government, particularly, in the banking sector.

INBEF says it is on the path of agitation since long on the burning issue of NPAs, writing off of huge quantum of bad debts, one time settlement of mounting bad debts in a throw away price in the banking industry, which are paving the way to big corporates to enjoy the public funds at their whims and caprices.

Comments

User

Dhanaji Kenjle

1 decade ago

Enough is enough.....ever since the disease of nationalization gripped India in the late 50's, PSU's gradually but steadily immersed themselves into the cesspool of corrupt practices and and became as opaque as possible in their dealings. This sickness became chronic in the PSU banks and the malignancy now is exhibited as the Mallya Syndrome. The best cure is first consolidation of several different banks under fewer names. Yearly forensic audits and severe punishments to defaulters and corrupt bankers.

Anoop Chaudhary

1 decade ago

Mallya should not bailed out and bank needs to recover the tax payer money as we do not want to pay again Mallya cess in next budget

Sriramkartik

1 decade ago

Mallya will never be brought to book. If he is, the names of aome very rich and powerful politicians as well as the past and present senior management of various PSU and private banks will be out in the open for their corrupt practices in allowing Mallya to first take such huge sums with negligble collateral and then brazenly default without fear of penal action.

Ramesh Bajaj

1 decade ago

Now that the Government is thinking of taking action against defaulters, that is indeed good news.

The Government should also start studying loopholes is Registration act, where so many fraudulent deeds are being registered.
This act is over 100 years old (1908)

Nalin Patel

Replied to Ramesh Bajaj comment 1 decade ago

Ashok m Rane

1 decade ago

Instead of fighting in the Parliament on the issue" Who allowed Mallya to escape from the country", the opposition and the ruling party/ Govt should take action for bringing him back and investigate the matter and should recover the amount from disposing off the assets.
If Unions try to raise the matter they are harassed/ victimised by the managements through vindictive actions.
The acts of Banks CEOs/CMDs are not punishable as they are President's appointees.Unless and untill the rules are framed for making them accountable, it will be very difficult to stop the loot of Public Funds through such Loans.

Nalin Patel

Replied to Ashok m Rane comment 1 decade ago

manoharlalsharma

1 decade ago

flight of fancy POLITICAL will ignores the 11 lac crores bank NPA because this was the PURE profit earned to ERADICATE Poowarity from the country but it is distributed as POLL funding.

Nalin Patel

Replied to manoharlalsharma comment 1 decade ago

delink economy from politics, why india is behind? political disruptions, disrupts economy. as result econ omy suffers and political parties are unable to contrubute to political thought of india.

MG Warrier

1 decade ago

Sharing such views held by unions with media is welcome. Perhaps, instead of scaring stakeholders about 'chain reaction', unions could take up with the managements of organisations they represent, the harm delay in action against wilful defaulters can cause to the financial sector.