In Vijay Mallya case i have always been keeping my close eye on every movement of his case as how he got success in his business, all business tactics of maalya to grab any deal and also full story of kingfisher airline from establishment to defnucted.
"MALLYA AS A SPLENDID BUSINESSMAN"
Vijay Mallya is a fugitive Indian businessman and ex politician who is best known as the ex- chairman of United Spirits Ltd, Indias's largest spirits company and owner of Kingfisher Airline. he is the current chairman of the United Breweries (UB) Group which is a conglomerate with interests in beverage alcohol, civil aviation, real state and fertilizers among others.Mallya has been a member of upper house of the parliyament of india.he has ownership stakes in various industries and ventuers sach as the Formula One, Indian Premier League and National Football team as well.
CAREER
mallya's business career started when he ascended as the Chairman of the United Breweries group in 1983, at the age of 28 years, following his father's demise. Mallya is credited with having grown the group into a multinational conglomerate with over 60 companies and an annual turnover increase of more than 64% in 15 years to around US$ 11 billion in 1998-99 over the years the UB Group had managed to acquire berger paints, best and Crompton in 1988, Mangalore Chemicals and Fertilizers in 1990. The group acquired The Asian Age newspaper (publisher of film manazine Cine Blize) in 2001.
Mallya's UB Group's Kingfisher brand currently hold more than 50% of the market share in India's beer market. the beer is exported to around 52 different countries Outside of india and is also among the leaders in the international beer market.
The group's flagship, United spirits Ltd, was sold to global spirits gaint Diageo while Mallya retained a minority stake in the company
In 2005, Mallya launched the Kingfisher Airlines, which was a considerably major business venture. Although it quickly became insolvent and had to be closed down.
Mallya's political career started when he was elected to the Rajya Sabha in 2002 from his home state of Karnataka with Congress Party's and Janata Dal's (secular) support.
In 2010, he was re-elected for his second term with the support of the Bhartiya Janta Party and the Janta Dal (secular).
HEIGHTS
besides brewries, Mallya also had interested in various ot ventures. such as :
- co- owns the Formula One team sahara force India
- Owns the IPL team Royal Challengers Bangalore
- Owns the I- League teams East Bengal FC and mohun Bagan AC
- Member of the World Motor Sport Council and represents India at the FIA
In 2004, Mallya successfully bid for Tipu Sultan's sward at an auction in London for around 175,000 pound Sterlings and brought it back to india. Mallya is also known to be an elaborate flaunt and a show of wealth. he is also known as a collector of indian artifacts.
Later, he bid for, and returned with , arround 30 items belonging to Tipu Sultan from various auction houses in the Uk.
In 2009, Mallya successfully bid for, and bought, belonings of Mahatma Gandhi for US$1.8 million, in a New York auction house. This issue created a controversy in india where the government of india tried unsuccessfully to stop the bidding.
AWARDS
Mallya has received several professional awards for his business acumen in india as well as abroad.
he has received:
- Honorary Degree of Doctorate of Philosophy in business Administration by southern California University for professional studies (1997)
- Fance's high award, 'Officier de la Legion d'Honneur'
- World Economic fourm's 'Global Leader for Tomarrow' award
- 'Entrepreneur of the year' award at the Asian Awards (2010)
"MALLYA AS A FUGITIVE ECONOMIC OFFENDER"
In 2005 vijay mallya had launched kingfisher airline on birthday of his sun sidharth mallya
airline business is huge capital intensive business it's takes lot of capital to run it. Vijay Mallya wanted air travel to be luxurious so he had provided luxury accommodation to the passengers And told all KFA staff to keep all the passengers as guests.He took full care of the satisfaction of the passengers. Travelers liked this special genre of KFA and kfa started growing fast. Soon, more than 25% of India's passengers started traveling from KFA And kfa became the no. 2 airline of india Still kfa hadn't earned profits yet.After initial success, Vijay mallya decided to started the International flight of KFA in 2007.But there was a prerequisite to start an international flight that the airline started at least five years ago.But kfa had started only two years ago to fulfill this condition, Vijay Mallya had bought Air Deccan which was launched four years ago And now it was on the verge of closure.So after buying it, Vijay Mallya had to wait for just one year to start an international flight.There was already a lot of debt on the KFA and the company had to earn profit But by buying Air Deccan, the loan was increased Kingfisher now became famous on the named as luxury airline due to luxurious facities of KFA, its ticket price was much higher where as Air Deccan was a local airline company Vijay Mallya changed the name of Air Dekken to Kingfisher Red From which it got the brand of Kingfisher and its price was also low.But Vijay Mallya did not like ordinary things. gradually, he started offering luxurious facilities also in Kingfisher Red The passengers were getting good facilities in low cost. After that the passengers started traveling from Kingfisher Red instead of Kingfisher Airlines, becouse there was no visible difference in both servies And Kingfisher Red's ticket price was lower than Kingfisher Airline.Whereas the customer was started choosing Kingfisher Red instead of Kingfisher Airline.due to luxuries facilities,the price of Kingfisher Red was also increased Then the passengers started traveling from other low-cost airlines. At the same time the cost of crude oil started to grow very fast and reached till 140$/ barrel,Value of rupee also decreased and recession came. And due to these reasons the problems of Kingfisher Airlines increased greatly.
The Kingfisher Airline's domestic flight was not profitable and Vijay Mallya had started international flight also While international flights cost a lot of money with too much competition.Thereby the expenses of Kingfisher Airlines increased so much high
The airline's earnings were low and the expenditure was increasing Mallya had also started flight on some international destinations where very few airlines allowed to fly but this plan of mallya was also got unsuccessful because Mallya paid more attention to his expenses rather than the airline's profit When the extension plan failed, the deficit was so high that the airline could not recover.
When things started to go out of hand, Mallya started seeking for foreign investors Then "Etihad Airways" agreed to invest in Kingfisher Airline But at that time FDI was not allowed in Civil Aviation. Mallya also requested to GOI to allowed FDI but it did not work. "Etihad Airlines" was also waiting for allowed of FDI by government Due to all the problems, Mallya sutted down Kingfisher Red.
at the same time Kingfisher Airline staff was not getting salary for seven months. So that they did strike for salary and the Kingfisher Airlines operation was also closed.
Employees of the Kingfisher Airline were also angry due to the fact that when employees were striking for their salary, Mallya was taking audition of models for Kingfisher calender. Then in December 2012 the license of Kingfisher Airlines was canceled and Kingfisher's business was closed.
after some days of shut down the Kingfisher airline, the government had implemented FDI to civil aviation.then "Etihad airways" invested in Jet Airways.
The business of airline is a huge capital intensive business for whom mallya had taken lot of loan Mallya had fully confident on his plan, that's why he gave his personal guarantee for Kingfisher Airlines's Rs 1500 crore loan But when the Kingfisher airline was shut down, he could not pay the Rs 9000cr loan on Kingfisher Airlines.Vijay Mallya did not pay that loan too. there had some meeting between mallya and bank for settlement of loan.There was a loan of 9000cr on the airline, in which Mallya was ready to pay the principal amount of loan which was 6600cr rupees but the banks rejected that offer.
Mallya fled Britain in March 2016 And now Mallya is a wanted in the case of loan defaults of Rs 9000cr. The bank also sanctioned a large loan to the airline without the proper due diligence . Even when the airline was passing through a very poor condition, public sector bank IDBI had lended a loan of about Rs 900cr. to the airline later that IDBI manager was arrested. Everything was fine till the airline was doing good, but as soon as the problems came, the airline started to falter. The airline did not have strong management that could tackle these problems.The profit margins are very low in the airline industry and To run the airline in profit, it takes a lot of effort.
Air India is a government-owned airline who has been faceing losses for last ten years you can see here Air India is facing losses for many years and the loss of two- three thousand crores rupees annually is a minor issue for Air India. Due to these losses, the government has to continuously provided funds to Air India.And this amount is much higher than the kingfisher airline's loan amount
CURRENT ACTIVITY ON HIS CASE
The fugitive economic offender bill was introduced in the Lok Sabha on March 12, 2018 which was approved by The Cabinet as the ordinance on April 21 and on same day the President also signed it. Under this Ordinance, under the Money Laundering Act 2002, the Special Court can order an individual to seize his property immediately after declaring a fugitive financial offender.
Enforcement Directorate (ED) had filed a petition in the Special Court of Mumbai to declare liquor businessman Vijay Mallya as a 'fugitive convict' under the new fugitive law in the bank loan default case and this was the first case filed by the Investigating Agency under the fugitive Economic Offenders Ordinance
ED officials said, that before the investigation agency submitted evidence in the two chargesheets filed under Money Laundering Act, on the basis of that, the court has asked Mallya to declare a fugitive offender.
whereas Mallya is challenging Laundering's allegations in London because the Indian government is in an attempt to extradite Mallya. At the same time, Mallya is facing litigation in more than Rs 9000 crore loan default case.
MALLYA BREAKS HIS SILENCE AND BLAMED TO GOVERNMENT
In 26 june, after a long mallya breaks his silence and disclosed that he had written a letter to PM and Finance Minister two years ago mallya said that, He wrote that letter on April 15, 2016 to clarify himself, but the PM and the finance minister did'nt give any respond to him. Mallya has also said that he has become a poster boy of bank default. He has been used to provoke people's anger. Mallya said that I have been proved to be a fugitive offender in loan case of rs 9000cr given to kingfisher airlines by politicians and media Some banks have also declared his a willful defaulter. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have filed a charge sheet against him with many unconfirmed and false allegations. Mallya also said that the ED has attached all assets of owned by Mallya and his family group companies too under the Prevention of Money Laundering Act (PMLA).
the existing price of these asset is almost 13,900 crores.
Mallya also said, that he wants to settle the case by paying the debts to banks. He said that he has been trying to solve that matter for a long . But if outside factors interfere, then he can't do anything.
Mallya has sought permission to sell assets by filing an application in the Karnataka High Court.Whereby he will pay debts taken from banks.
MY POINT OF VIEW ON THIS CASE
Vijay Mallya had remains 40th rank in list of top business man of india for many years in forbes magzine. and in previous a
senior staff officer of UB has already said that Mallya is a hard worker and adept businessman.
I have always appreciated the talented person
of every field . and vijay mallya is also a very talented business man.
I have been hearing stories of his business tactic from my school time.
And after reading the KFA case, it seems that mallya is just a victim on this case, real story is something else.
MALLYA IS WILFUL DEFAULTER
Mallya did many effort to revive kfa before it license got canceled.
he changed KFA ceo serveral time. and
to trackle loan issue mallya also asked to GOI forrehabilitation packege but GOI had denied to help him- mallya want to deal with etihad airways in which etihad airways going to buy 48% stake of kingfisher airline but GOI had not approved FDI in civil aviation but after canceled kfa licence FDI has implemented on civil aviation why?
i have issue with mallya that he didnt pay salary of kfa staff but now mallya also promied to pay full salery of KFA staff and clarify that why he couldnt pay it previous
i want to say in mallya case that we are losing brilliant businessman to trap him in some fake cases.
people tried to defame him called him a lickerish man to see his lifestyle
united beverage is business of beer and no one can promote beer in public at india to organise parties and calendar event.mallya promoting his beer brand trough his lifestyle. we dont need to forget that kingfisher beer has been top two beer brand of world and that was the skill of mallya
he tried to did samething on his airline business but he didn't get support of GOI and plan got unsuccessful.
Please don't campare Vijay Mallya case to Neerav Modi case.
But vijay Mallya borrowed loan for support or expend to his business. And he run away when ED and CBI started bothering him with fake allegations.
Please don't campare Vijay Mallya case to Neerav Modi case.
both are different cases
Vaijay Mallya always provide a quality service to his customers where as neerav modi cheated his customers to sell artificial jewellery he just want to gain money for that he played all game of fake credit note and ran away.
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