Simple Flying
What went wrong with kingfisher airlines.
It was a short but eventful story for Kingfisher.
It will soon be 20 years since Kingfisher Airlines was founded. Indian residents would have been well familiarized with the Kingfisher name before the carrier was formed in 2003, and the airline held a strong presence in the skies during its tenure.
The early years
The carrier was formed by Dr. Vijay Mallya, the chairman of the alcohol conglomerate UB Group. Launched from its Mumbai base, it commenced operations with its fresh 174-seater A320 aircraft. Its A320 family models were primarily formatted with two cabins - the premium Kingfisher First and the economy Kingfisher Class. The strong start led to an impressive Skytrax rating of five stars when it came to customer service.
However, the balance sheet wasn't matching the strong reputation. As a result, the operator was merged with Air Deccan , with the Kingfisher mainline handling regular operations and Kingfisher Red overseeing low-cost services. By the fall of 2009, the company held 24 A320s, eight A321s , and 27 ATR 72 regional units.
Experiencing Kingfisher airlines myself in 2010, it was a comfortable and smooth ride on the twinjet A330 . The five widebodies joined the airline in 2008, adding to the outfit's growing fleet . Passengers were treated to full meal service and had plenty of Kingfisher beer on the go.
Financial struggles
The efforts to reshape only piled on the debts for the carrier. Altogether, after seven years of operating, Kingfisher had accumulated losses of more than $880 million. Half of its aircraft holdings had been grounded, and numerous employees were on strike.
In September 2011, Kingfisher's leadership disclosed to the Bombay Stock Exchange (BSE) that the firm had incurred significant losses and its net worth had been eroded. Yet, there had been hopes to turn things around. In February 2012, it received a notice from the Airports Authority of India in regard to dues of $32 million. Notably, the carrier was running on a cash-and-carry basis for half a year, with daily payments totaling $100,000. The airline was even facing potential legal action for not paying taxes.
Tax arrears were amounting to $7.5 million. Lenders were also piling the pressure on Kingfisher, with arrears estimated to be approximately $35 million at the turn of 2012. Adding to the woes were aircraft lease and fuel costs, leading to some planes being grounded due to maintenance and overhaul fees.
Mallya had forked out a few hundred million dollars of his own money in an effort to pay money owed to staff. Still, it was not enough to save the day. Engineer strikes catalyzed the cancellation of all flights in October 2012,
The end of the road
On October 20th, the Directorate General of Civil Aviation (DGCA) suspended Kingfisher's license "till such time KFA submits a concrete revival plan ensuring safe, reliable, efficient and sustainable scheduled air transport services."
According to Business Standard, Ajit Singh, India's civil aviation minister at the time, shared:
“We cannot compromise passenger safety. DGCA has given enough time to KFA. It will have to come up with a satisfactory operational preparedness plan. It will have to ensure that KFA employees are not disgruntled.”
There were initially high hopes for Kingfisher Airlines. It even ordered the Airbus A380 . Regardless, it would not return to the skies. Four years after it entered bankruptcy, in March 2016, a consortium of banks moved to recover debts.
However, Mallya was now living in the United Kingdom. He filed an appeal in 2020 against an extradition order on the alleged charges of fraud and money laundering related to unrecovered loans in regard to the airline.
Finally, this July, he was sentenced to four months in jail by India’s Supreme Court and was directed to deposit $40 million with interest within four weeks. It was revealed here that former Kingfisher Airlines employees are still waiting for money owed after a decade since the carrier ceased operations.
The Kingfisher brand is still going strong when it comes to beer, and the UB company is reporting healthy revenues of over $500 million. Yet, their story goes on without Mallya, who sold his stake in the conglomerate in June 2021.
What are your thoughts about Kingfisher Airlines’ journey? What do you make of the airline’s overall operations? Let us know what you think of the carrier and its history in the comment section.
Source: The Airline Revolution: Economic Analysis of Airline Performance and Public Policy, Gordon Mills, 2016 ; Business Standard
Academia.edu no longer supports Internet Explorer.
To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser .
Enter the email address you signed up with and we'll email you a reset link.
- We're Hiring!
- Help Center
A case study on the downfall of kingfisher airlines
2019, IP innovative publication pvt. ltd
Kingfisher Airlines Ltd. was owned by biggest liquor tycoon of India with an ambition to become an industry leader. Growing share in aviation market, wide number of destinations and numerous awards, depicted a very attractive and innovative picture for the company. Kingfisher airlines achieved success in gaining customer satisfaction by offering great and comfortable flying experience to its passengers. However, in the Indian aviation sector, Kingfisher Airlines had a short but lasting impression. By the end of 2011, Kingfisher Airlines suffered a huge financial crisis. Kingfisher Airlines, UB Holdings Ltd. was provided loan by many private and public sector banks in India, considering the reputation of its CMD. He was unable to repay loans to many public sector banks, however private banks recovered all loans. This paper describes the downfall of Kingfisher Airlines and the study of financial condition of United Breweries Holdings. Here, we have tried to understand the business of Kingfisher Airlines and studied the role of banks in extending loans and recovery attempts. Moreover, we have attempted to emphasize the reasons behind the financial failure of the company from the point of view of mistakes in strategic decision making.
Related Papers
International Journal of Business Excellence
Umesh Mahtani
Krisha Shah
The civil aviation industry in India is one of the fastest growing industries in the world with private sector accounting for more than 75% of the market share and currently ranks at the 3rd position globally. It is expected to become the largest air passenger and transport market by 2024 after overtaking UK. However, this growth is only limited to a certain airlines and many have succumbed in front of their huge losses. This paper aims to identify the reasons of such phenomenal growth in some airlines and at the same time understand what went wrong with the others due to which they faced losses and ultimately had to be shut down. This paper is curated after a rigorous research and study both primary and secondary in order to get a true and fair picture of the scenario in India as well as abroad with regards to the aviation industry and to understand the consumer preferences for the same.
Journal of emerging technologies and innovative research
Animesh Chandra
Jet Airways was founded by Naresh Goyal in 1992 after India opened its skies for private airlines. One of India’s finest and the biggest private airline company Jet Airways (India) Private Limited, which ruled the Indian skies till 2005 has been grounded and all operations are at a halt. The last flight of the airline was from Amritsar to Mumbai on 17 April, 2019 and since then the airlines is grounded. The company is in a debt of billion dollars and shutting down of the company has badly affected more than 20,000 employees. This case study analysis the reasons that led to the collapse of one the finest airlines in India. The findings and observations from the study give a conclusion report of problems faced by the airlines. The ultimate aim of the study is to find the causes for the downfall of India’s premier airlines Jet Airways.
Transport Policy
F. O'Connell , Chikage Miyoshi , David Warnock-Smith
suharto abdul majid
the high growth of national aviation services after the aviation deregulation in 2000 has given a positive impact on the increase of national economic activities, especially in tour and trade. In the same time, however, it negatively impacts the aviation business itself, making many airline companies stop their operation and then go to bankruptcy. The aim of this research is to analyze the factors causing bankruptcy to some national airline companies in Indonesia after the aviation deregulation in the periods of 2001-2010 and 2011-2015. It is an exploratory research with a qualitative descriptive approach emphasizing on evaluating the factors causing bankruptcy to a number of domestic airlines in Indonesia. The method of data collection is an interview with the format of focus group discussion (FGD), while the data analysis uses factor analysis method. The results of this research show that there are two main factors that cause bankruptcy to a number of domestic airlines in Indonesi...
Dharthi Ngo
JRIM JOURNAL
Interal Res journa Managt Sci Tech , mushtaq khan
Financial Soundness whether it is in terms of liquidity, profitability, solvency or growth plays a significant role in any organization to meet current obligations and maintain a healthy profit earning ability from business operations. Poor financial position of the firms may lead to insolvency which has an impact not only on the stakeholders of the company but also on the economy of the country at large. There have been many developments in the field of financial management which helps to analyze the financial position of a company and in predicting the insolvency of a business concern. One such development is Altman Z-score model which is considered as an important tool for insolvency prediction.This paper is an attempt to analyze the possible insolvency of select Indian Airline Ccompanies. TwoAviation Companies in the Indian context have been selected and their Z-Score is measured. In this study detailed analysis for a period of 10 years from 2007 to 2016 is carried out. Based upon the calculated Z-score, findings and conclusion have been drawn.
Universal Journal of Accounting and Finance
Horizon Research Publishing(HRPUB) Kevin Nelson
The COVID 19 has brought down aviation industry to its knees. Till March 2020, before getting sense of distraction by this pandemic, Indian economy was eager to take off to reach further heights including the Aviation Sector. The growing middle class was the base reason for the prosperity in the Aviation Sector, but the pandemic has changed the whole scenario at least temporarily for next couple of years. However, even before the pandemic the history is showing that almost all Indian airlines companies are in losses. Jet Airways is almost grounded permanently whereas Kingfisher Airlines is now a history. Being one of the important sectors for the economy and even for the investors, an attempt is made to find out the reasons behind financial failure of selected Indian Aviation Companies by using Altaman's Z Score Model and Pilarski's P-Score Model and various problems faced by them. The secondary data is collected mainly by using Annual Reports of 4 leading Airlines Companies in India. Analysis is showing that various internal and external factors which are responsible for such pathetic financial position of these companies and a serious overhauling is required not only by those companies but also from the government side.
In spite of the cutthroat competition, changing business models, thin profit margins and other turbulent industry nature, Ethiopian Airlines continued to register a successful record since its establishment. Its growth and success is significant especially in recent decades while many African and global airlines are registering bankruptcy, continues loss, layovers and other serious problems. Yet the industry is very interesting to study, despite its challenges and dynamism. The main purpose of this research paper is to identify factors that determine the success of airline business. The specific objective of the study was to identify the determinant factors for the success of Ethiopian Airlines and to establish how and to what extent each factor understudy affects its success. These factors are: implementation of low-cost factors, influence of national culture, integration in airline Alliances, sate influence and privatization and market liberalization influences ET"s success i...
RELATED PAPERS
Stem Cell Research & Therapy
iron gOld sTars
… e Serviços de …
Francisco Bastos
Biochemical Pharmacology
Avraham Mayevsky
Didem Akyol
Veronica Pessino
Andras Iosif
Journal of the American Statistical Association
John M Abowd
Revista de Ciencias Agrícolas
Naudith Urango Esquivel
Dandara Leal
Journal of manipulative and physiological therapeutics
Chi Ngai Lo
Sozial Extra
Tobias Franzheld
Polymer Testing
Tomaž Vuherer
Nuances: estudos sobre Educação
Vanda Machado
Ahmad Fauzi
Jurnal Chart Datum
Dipo Yudhatama
Journal of Economic Methodology
Robert Mróz
Medical Image Analysis
Jianfei Liu
Antimicrobial Agents and Chemotherapy
ACN International
Carlos Rosas-Jiménez
Khermaza Abderrahmane
Paulo Fiadeiro
Annales UMCS, Medicina
Jacek Postępski
Journal of Aquatic Biology & Fisheries
RUBY THOMAS
Cristian Villagra
Elisabeth Celius
RELATED TOPICS
- We're Hiring!
- Help Center
- Find new research papers in:
- Health Sciences
- Earth Sciences
- Cognitive Science
- Mathematics
- Computer Science
- Academia ©2024
To read this content please select one of the options below:
Please note you do not have access to teaching notes, survival lessons from a dying kingfisher: what not to do in the airlines industry in india.
Strategic Direction
ISSN : 0258-0543
Article publication date: 13 July 2015
This article focuses on the lessons that can be learnt from the bankruptcy of Kingfisher airlines (KFA).
Design/methodology/approach
The paper explores the key reasons behind the failure of KFA. It follows the strategic decisions and actions that KFA took over its lifespan. It highlights the key mistakes that it made and how these ultimately contributed to its demise. It recommends the strategies that other companies can follow to avoid the same fate as KFA.
KFA made many strategic blunders. It frequently and needlessly changed its business model. It unnecessarily spent on providing offerings that customers did not value. It was strategically blinded by the flamboyance of its owner. In addition, it took too long to read the writing on the wall. Even when clear signals were available of the impending crisis it faced, KFA showed limited urgency to resolve the issues.
Practical implications
Companies need to focus on a sharp business model and not try to be everything for everyone. Companies that gain valuable insight of what its customers value and design their business model to satisfy these requirements have higher chance of survival.
Social implications
It concedes that airlines need to balance the interests of multiple stakeholders. These include its owners, managers, employees, customers, regulators and suppliers. KFA was unable to do this consistently and hence could not survive in the dynamic airlines industry in India.
Originality/value
The paper considers the context of the highly dynamic airline industry in India. It is an industry where new competitors are entering, regulatory changes are frequent and industry profitability is low. In such a scenario, companies such as KFA who do not have a consistent and coherent strategy find it difficult to survive. It provides insights into the challenges faced and recommends strategies for the companies to follow so as to improve their chances of long-term survival.
- Business model
- Kingfisher airlines
Pathak, A.A. (2015), "Survival lessons from a dying Kingfisher: What not to do in the airlines industry in India", Strategic Direction , Vol. 31 No. 8, pp. 13-16. https://doi.org/10.1108/SD-06-2015-0086
Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited
Related articles
We’re listening — tell us what you think, something didn’t work….
Report bugs here
All feedback is valuable
Please share your general feedback
Join us on our journey
Platform update page.
Visit emeraldpublishing.com/platformupdate to discover the latest news and updates
Questions & More Information
Answers to the most commonly asked questions here
The Case of Vijay Mallya and Kingfisher Airlines
Part of SPI’s India Series
By: Vilasini Pollisetty
Vijay Vital Mallya (VM) was born to industrialist and business tycoon Vital Mallya in 1955. He went on to take over his father’s business (UB Group) in 1983 at the young age of 28. VM had soaring ambition. He always looked for opportunities to expand his father’s existing business. He has been in the limelight recently as a result of financial crimes he committed before fleeing to the UK. The Indian government is working on the process of extraditing him from the UK.
Here is a timeline [1] of key events that show how VM went from being the most sought-after business man to a criminal:
2005: Vijay Mallya chairman of United Breweries (Holding) Limited, started the luxury airline: Kingfisher Airlines.
2007: Vijay Mallya acquires Air Deccan, which was a low-cost airline, from owner Capt. Gopinath.
2008: The Air Deccan takeover was formalized and UB group paid up Rs.550 crores (US$79 million) for its stake of 26% in the company.
Later that same year Kingfisher Airlines faced a loss of Rs934 crore (US$133 million) due to various reasons like oil price increases, acquisition of a financially unsound airline and other reasons.
2009: The consolidated debt of the airline accumulates to a massive Rs5,665 crore (US$810 million) that increases to Rs7,000 crores (US$1 billion). IDBI bank issues a loan of Rs900 crores (US$128 million) to the airline.
- Kingfisher’s board approves a resolution to raise $100 million by various instruments including Global Depository Receipts. This was in addition to raise capital for an amount not exceeding Rs500 crore (US$71 million)by a rights issue of equity shares.
- Kingfisher reports a net loss of Rs418.77 crores (US$59 million) during the second quarter of the fiscal year. Its income from operations also declines by 13.6 per cent during the quarter compared to the same period the previous year. In view of the huge losses and capacity reduction, Kingfisher decides to lay off nearly 100 pilots.
2010: Banks give the airline an ultimatum of nine months to pay back the entire loan amount that stands at $1.3 billion.
- Kingfisher Airlines Board approves debt recast package. The airline’s debt now stands at Rs6,000 crore (US$858 million).
- 2011-Mumbai International Airport Pvt. Ltd. sends a notice to the cash-strapped airline to pay Rs90 crore (US$12million ) outstanding dues.
- The Income Tax Department freezes 11 accounts of Kingfisher Airlines for non-payment of tax.
2012: Kingfisher Airlines cancels several of its flights after the Income Tax Department froze some of its accounts.
- The carrier operates on a trimmed schedule and faces the prospect of losing a number of prime flying slots.
- International Air Transport Association asks travel agents to immediately stop booking tickets on Kingfisher’s behalf for failure to settle dues since February.
- Further trouble, as employees protest delays in salary payment.
- Kingfisher announces reduction of its international operations.
- Revenue department of India threatens to take Kingfisher Airlines to court over alleged tax evasion, claiming the company has not deposited taxes it collected from travelers.
- Lenders give two weeks to come up with a plan to improve operations. The airline had a total outstanding debt of around Rs.7,500 crore (US$1 billion)to a consortium of 17 banks led by State Bank of India (SBI).
- Unpaid staff protest in Delhi, Mumbai and other airports and almost all of Kingfisher’s flights from all stations were cancelled as engineers did not certify the planes to fly.
- A non-bailable arrest warrant issued against Vijay Mallya, and four other directors for non-appearance in cases relating to bouncing of cheques issued in favour of GMR Hyderabad International Airport Limited (GHIAL) towards user charges.
- The carrier loses its flying license as the DGCA refused to renew its Air Operator Permit (AOP).
2013: DGCA asks the carrier to clear all dues, including pending salaries of employees, before seeking license renewal.
2014: Kingfisher Airlines reported a net loss of Rs822.42 crore (US$117 million)for the third quarter ended December 31, 2013.
- United Bank of India declares Mallya and three directors of Kingfisher Airlines as willful defaulters.
2016: Banks move Supreme Court to ban Mallya’s overseas travel.
- Mallya leaves India on March 2, government tells court.
Money Laundering
Allegations of money laundering were first made when it was speculated that Mallya had used loan money received from the banks and diverted them overseas to various tax havens. Mallya laundered the money with the help of shell companies with dummy directors that were controlled by him. The shell companies were located in seven countries, including the United Kingdom , USA, Ireland and France [2] . These companies did not have any activity and independent source of income. Mallya was controlling the companies through his office personnel. The directors in said companies acted on directions of UB Group at the command of Mallya [3] .
Classified As a “Proclaimed Offender”
In order to understand why Vijay Mallya was labelled a “proclaimed offender”, it is important to know the exact meaning of this term:
According to section 82(1) of the Criminal Procedure Code,1973(CrPc) if any Court in India has any reason to believe a person against whom a warrant has been issued has absconded or is concealing himself in such a manner that the warrant cannot be executed, then such court can publish a written proclamation requiring him to appear at a specified place and specified time. The person is required to appear in not less than thirty days of the publishing of the written proclamation by the court. Section 82(2) provides the various ways in which the court can publish the written proclamation.
Section 82(4) mentions that any person who does not comply with provisions mentioned in Section 82(1), the Court may after making inquiry as it thinks fit, pronounce him a “proclaimed offender” and issue a declaration to that effect.
In the case of VM, he fled the country on March 2, 2016 after a consortium of banks moved the Supreme Court to recover Rs.9,000 crores (US$1.3 billion) they claimed he owed them. On April 18, 2016, the Enforcement Directorate (ED) issued a non-bailable warrant against VM to appear in court after rejecting his plea that all allegations against his company were ‘false and incorrect’ [4] .
The ED summoned VM thrice to appear in the court and testify, but he failed to do so. This behavior caused him to be termed as a “proclaimed offender”.
Ethics Analysis
As per Section 166 of the Companies Act, 2013 [5] , the director of any company incorporated under the Act has certain duties.
Firstly, the director has the duty to act in good faith to achieve the overall objectives of the company and to act in the best interest of all its members, employees, shareholders, community and environment.
Next, he is required to exercise his duties with due and reasonable care, skill and diligence and exercise his own independent judgements.
He must not be involved in situations that may directly or indirectly be in conflict with the interests of the company. Lastly, he must never achieve or try to achieve any kind of unjustified gains for himself or for a person of his choice and if he does so can be liable for fine equal to the amount of the undue gain.
1. Failing in his fiduciary duty to shareholders, employees, and investors:
- A director of a company is expected to always put the interests of the corporation and all the people involved with it above his own personal interests. He is expected to remain loyal and ensure to maintain the trust of shareholders, employees and investors. Any kind of conflict of interest , such as earning a secret profit, unknown/undisclosed business dealings show disloyalty on the part of the director.
- The director of Kingfisher Airlines, Vijay Mallya resorted to such practices for his own gains.
- Kingfisher airlines, the second largest airlines in India, did not generate profits for 8 years. [6]
- Mallya did not stop operations in spite of making only losses and allowed shareholders and customers to be under the illusion the airline was functioning properly.
- In 2012, the losses of the airline were publicly discussed when Mallya failed to pay the salaries of his employees. When asked about this, Mallya made statements about not having enough money to pay the salaries due to reported losses.
- Soon in 2013, Diageo acquired a 27% stake in United Spirits Limited for Rs.6,500 crores (US$902 million). However, not a single lender or employee was paid.
- There was speculation that Mallya had his own agenda and invested the money in his IPL (Indian Premier League) cricket team. A few years later he spent a lot of the funds for his elaborate birthday bash which featured renowned singer Enrique Iglesias [7] .
- Such instances are clear examples of Mallya violating his fiduciary duties as a director of a company.
2. Non-Disclosure of Non-Compete Clause
- A probe by the Serious Fraud Investigation Office (SFIO) in India found that corporate ethics were compromised in the merger between Kingfisher Airlines and Deccan Aviation Limited [8] .
- Kingfisher Airlines had created three new departments in the airline to avoid paying capital gains tax.
- In addition, a non-compete fee of Rs.30 Crores (US$4 million ) was paid to the owner of Deccan Aviation, Captain Gopinath, which was not disclosed to shareholders.
- Transparency is vital in a listed business. Full disclosure of information must be provided to the shareholders, so they can make informed decisions.
- Any kind of non-disclosure of important details points to the dishonesty of the company director and shows how little he cares about his shareholders.
3. Misuse of Power [9]
- There is a celebrated quote, “With great power comes great responsibility [10] ”.
- The primary responsibility that arises with power is the responsibility not to misuse such power.
- In 2010 Mallya was selected to be an MP of the Rajya Sabha (Upper House), in the Indian Parliament and used his position for his personal use.
- He misused his position as a Member of Parliament to ensure he was put in the civil aviation committee. He did so to speed up the approval of Foreign Direct Investment (FDI) into the aviation sector. This expedited approval assured that foreign investors could invest in Kingfisher Airlines when the airlines was hitting its lowest point [11] .
- VM took advantage of access to Parliament. He discussed informally with Union Finance Minister Arun Jaitley, within the corridors of Parliament, the possibility of convincing banks to settle with Kingfisher Airlines. The Finance Minister claims to have denied his request as it was not made according to formal protocols. Immediately after this, Mallya fled the country. The following statement was made by the Finance Minister in response to the allegations:
Statement from Mr. Jaitley [12] :
“My attention has been drawn to a statement made to the media by Vijay Mallya on having met me with an offer of settlement.
The statement is factually false in as much as it does not reflect the truth. Since 2014, I have never given him any appointment to meet me and the question of his having met me does not arise. However, since he was a Member of Rajya Sabha and he occasionally attended the House, he misused that privilege on one occasion while I was walking out of the House to go to my room. He paced up to catch up with me and while walking uttered a sentence that “I am making an offer of settlement”. Having been fully briefed about his earlier “bluff offers”, without allowing him to proceed with the conversation, I curtly told him “there was no point talking to me and he must make offers to his bankers.” I did not even receive the papers that he was holding in his hand. Besides this one sentence exchange where he misused his privilege as a Rajya Sabha Member, in order to further his commercial interest as a bank debtor, there is no question of my having ever given him an appointment to meet me.”
The above instances reflect Mallya’s leadership qualities. He appears to be disconnected from the situation facing his employees, shareholders and other persons dependant on the company and its reputation. Though he is not legally liable to pay salaries to employees from his personal wealth, he could have taken moral responsibility for his actions that caused suffering in the lives of people whose livelihoods were dependent on Kingfisher Airlines. Mallya was an inspiration to many. His wealthy way of living fascinated them but some personal austerity wassurely required.
Yet in an interview, Vijay Mallya made the following statement and refused to take responsibility for the financial mess:
“In a Public Limited Company where is one man, who might be the chairman, responsible for the finances of the entire Company? And what has it got to do with all my other businesses? I have built up and run the largest spirits company in the world in this country.”
Recently Forbes Magazine dropped Mallya from their Billionaire list and stated his current net worth is only USD 800 million . He made a satirical comment on twitter:
Vijay Mallya @TheVijayMallya :
“Thanks to the Almighty that Forbes has removed me from the so called Billionaires list. Less jealousy, less frenzy and wrongful attacks.”
Present Standing of the Case [13]
Understandably, India wants Mallya to face criminal action relating to loans taken out by his defunct Kingfisher Airlines and Indian authorities want to recover about $1.3 billion they say Kingfisher owes.
On December 5, 2018, five days before the decision of Mallya’s extradition case, he further appeals to the banks to accept his settlement offer and also agrees to pay 100% of the principal loan amount he owes to them. He further justifies his actions in a series of tweets:
December 10, 2018 [14] : The Westminster Magistrates’ Court in London on Monday orders United Breweries chairman Vijay Mallya’s extradition to India. Indian finance minister Arun Jaitley welcoms the court’s decision on Mallya.
Mallya Redux
It is not easy to manage so many different companies at once and ensure they are all successful. Mallya had taken lot of risks and made new investments that his father had never made. An in depth study of the case shows that a majority of Mallya’s dealings were done for his own personal gains and not for the overall benefit of his employees, shareholders and investors. Mallya committed financial fraud and most importantly ethical violations by breaking the trust of the people who were not only dependant on his company but who even looked up to him as a role model. Mallya explains himself through his tweets, sitting in a far off country and communicating through social and other media. Instead of acting in this pathetically unethical way, he should return India and agree to trial in court as a virtuous person would do. Another aspect of this case most people tend to overlook is the mistake committed by the Indian Banks. It is their duty to conduct proper credit checks before sanctioning loans of such a large amounts to one company. Apparently, certain procedures and processes were omitted in order to grant loans to Kingfisher Airlines. The government of re-elected Narendra Modi should take note of this high profile case and put efforts into preventing similar behaviour in the future. A change in existing laws or introduction of a new law seems appropriate. Then again, the Indian government seems to be failing to keep a check on unethical and illegal behavior by tycoons, as the recent scam of renowned businessman and jeweller Nirav Modi [15] has once again shaken the nation.
REFERENCES:
https://economictimes.indiatimes.com/news/politics-and-nation/vijay-mallya-declared-proclaimed-offender-by-pmla-court/articleshow/52748005.cms
http://www.enforcementdirectorate.gov.in/faqs_on_pmla.pdf
http://theproofofguilt.blogspot.com/2015/06/section-82-crpc-and-proclaimed-offenders.html
https://www.ft.com/content/b0072e74-0d3d-11e6-b41f-0beb7e589515
https://timesofindia.indiatimes.com/business/india-business/New-RBI-debt-recast-norms-to-help-clean-up-bad-loans/articleshow/52738393.cms
http://www.saravade.in/Downloads/PMLA_A_Critical_Appraisal.pdf
https://uk.practicallaw.thomsonreuters.com/7-615-1126?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1
http://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
https://www.nolo.com/legal-encyclopedia/fiduciary-responsibility-corporations.html
https://www.theweek.in/news/india/2018/09/14/Guilty-of-conflict-of-interest-Mallya-and-the-curious-case-of-businessmen-MPs.html
https://timesofindia.indiatimes.com/india/mallya-has-case-of-fraud-to-answer-uk-court-told/articleshow/61918545.cms
https://indianexpress.com/article/business/companies/all-corporate-ethics-compromised-in-kingfisher-airlines-deccan-aviation-deal-serious-fraud-investigation-office-4945586/
https://www.ndtv.com/india-news/vijay-mallya-faces-fresh-money-laundering-charge-sheet-fugitive-tag-1868781
https://www.dailymail.co.uk/news/article-5532525/Kingfisher-beer-tycoon-67million-yacht-seized-unpaid-crew.html
https://www.businesstoday.in/current/economy-politics/exclusive-vijay-mallya-used-kingfisher-airlines-to-launder-rs-9990-crore-ed-chargesheet/story/279389.html
https://www.livemint.com/Companies/smvfjlMWKkl5aX6RZo9MiK/The-cases-against-Vijay-Mallya-and-Kingfisher-Airlines.html
https://www.financialexpress.com/opinion/mergers-and-acquisitions-no-need-to-regulate-the-non-compete-fee/510771/
https://www.entrepreneur.com/article/272322
https://www.ndtv.com/india-news/vijay-mallya-offers-to-repay-100-per-cent-to-banks-says-please-take-it-1957933?pfrom=home-topstories
https://www.thehindu.com/news/national/vijay-mallya-extradition-case-live-updates/article24933895.ece
https://www.livemint.com/Companies/nLyNim2xqg5lgGLeYkB4PO/Vijay-Mallya-in-UK-court-for-extradition-case-hearing.html?utm_source=scroll&utm_medium=referral&utm_campaign=scroll
https://timesofindia.indiatimes.com/india/mallya-diverted-most-of-rs-6000-crore-loan-to-shell-companies/articleshow/60820678.cms
https://www.businesstoday.in/current/economy-politics/vijay-mallya-used-f1-and-ipl-team-rcb-for-money-laundering-ed-chargesheet/story/279328.html
[1] https://www.indiainfoline.com/article/news-top-story/vijay-mallya-s-timeline-curse-of-good-times-116031000523_1.html
https://www.zawya.com/mena/en/busines s/story/Timeline_The_rise_and_fall_of_Vijay_Mallya-GN_18042017_190453/
https://www.dnaindia.com/business/report-vijay-mallya-arrested-timeline-of-money-laundering-case-that-led-to-king-of-good-times-downfall-2550100
https://www.livemint.com/Object/G1YWR33VqEAfHN9Bh1gBuL/vijay-mallya-timeline.html
[2] https://timesofindia.indiatimes.com/india/mallya-diverted-most-of-rs-6000-crore-loan-to-shell-companies/articleshow/60820678.cms
[3] https://www.businesstoday.in/current/economy-politics/vijay-mallya-used-f1-and-ipl-team-rcb-for-money-laundering-ed-chargesheet/story/279328.html
[4] https://economictimes.indiatimes.com/news/politics-and-nation/vijay-mallya-declared-proclaimed-offender-by-pmla-court/articleshow/52748005.cms
[5] http://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
[6] https://www.entrepreneur.com/article/272322
[7] https://timesofindia.indiatimes.com/city/goa/Enrique-to-be-Mallyas-Hero-on-60th-birthday/articleshow/50193822.cms
[8] https://indianexpress.com/article/business/companies/all-corporate-ethics-compromised-in-kingfisher-airlines-deccan-aviation-deal-serious-fraud-investigation-office-4945586/
[9] https://www.theweek.in/news/india/2018/09/14/Guilty-of-conflict-of-interest-Mallya-and-the-curious-case-of-businessmen-MPs.html
[10] http://www.inspirational-motivational-success-quotes.com/winstonchurchillquotes.html
[11] https://www.firstpost.com/business/mallya-meets-sharma-on-aviation-fdi-273000.html
[12] https://www.thehindu.com/news/national/vijay-mallya-extradition-case-live-updates/article24933895.ece
[13] https://www.livemint.com/Companies/nLyNim2xqg5lgGLeYkB4PO/Vijay-Mallya-in-UK-court-for-extradition-case-hearing.html?utm_source=scroll&utm_medium=referral&utm_campaign=scroll
[14] https://www.livemint.com/Companies/4XSaTzCOY1zQbbzKhpSl2K/London-court-orders-Vijay-Mallya-extradition.html
https://edition.cnn.com/2018/12/10/business/vijay-mallya-extradition-india-uk/index.html
[15] https://www.businesstoday.in/sectors/banks/nirav-modi-case-pnb-fraud-11400-crore-scam-ed-cbi-raid/story/270708.html
Photo: Courtesy of Business Insider
- Conflict of Interest
- Foreign Direct Investment (FDI)
- Capital Gains
- Responsibility
- Trust/trustworthiness
- Name First Last
- Your Message
Journal of Management Research and Analysis
Official Publication of Innovative Education and Scientific Research Foundation
Published by IP Innovative Publication Pvt. Ltd.
Print ISSN: 2394-2762
Online ISSN: 2394-2770
CODEN : JMRABX
- Current Issue
Volume: 11 , Issue: 1
Article type
Review Article
Article page
Authors details.
Ashok Panigrahi * , Antra Sinha , Anshul Garg , Astha Mehta
Article Metrics
View article as, downlaod files.
Bookmark article
Share article
Article indexing.
Citation Managers
Download Citation
Article statistics
Viewed: 10391
PDF Downloaded: 1992
A case study on the downfall of kingfisher airlines
Abstract Full Text PDF -----> Share on Facebook Share on Twitter -->