Vijay Mallya owes Rs 9000 crore to the banks, but the banks had taken only 10% of the loan amount as collateral.
The Supreme Court was astonished to hear this. It wondered how the banks could advance thousands of crores as loan to Mallya and his company with collaterals worth only 10% of the total loan amount.
"Don't the banks usually secure their loans?” questioned the judiciary. To this the reply was that the loans were given on the basis of brand value of Kingfisher which was very high at the time of advancement of the loans. This should be a good lesson to the banks in future.
The Centre should take steps to see to it that the banks are compensated for their loss. At the same time, the banks need to reprimanded as well for showing such poor judgement when handling public money.
Financial criminals like Vijay Mallya and Sujana Chowdary should first be disqualified immediately as Members of Parliament. How can law-breakers be allowed to become law-makers?