Vijay Mallya should learn something from Amitabh Bachan

A journalist from a reputed business paper sent me an email asking how I arrived at Rs. 90 crores, the amount that Vijay Mallya saved in interest and the government lost in interest when it allowed Vijay Mallya to delay payments by six months.

My rough calculations were as follows. Vijay mallya owed at that time Rs. 1000 crores to oil companies and Rs. 255 crores to airport authority almost all of which was overdue for payment. At 18% interest, monthly interest on Rs. 1000 crores works out to be 15 crores. Six months of interest is Rs. 90 crores. I think we can consider this to be a fair amount as Viajy Mallya was already overdue on 90% of his payment to oil companies. A couple of months delayed payment could mean anywhere from 15-30 crores in interest savings for Vijay Mallya which I have not included in the above amount. Also what about Rs. 255 crores to airport authority which was already overdue when he gave blank cheques to them. Monthly interest on this payment is roughly Rs. 4 crores. I think you can all do the additions.

What made me laugh were Vijay Mallya giving blank cheques? It made me laugh. Does government accept blank cheques? Will they take it from you and me?

Believe me Vijay Mallya has saved a lot of money in interest by this action of the government. Now with oil prices down and no cut in airfares, he is raking in cash but I don’t think he has paid money due to the government.

I think Vijay Mallya should learn something from Amitabh Bachan. We all know that his company ABCL landed up in trouble but as soon as he had money, he himself went to the prople who he owed money and returned the money owed. I still remember the photograph that showed him with Amar Singh going to Door Darshan to pay the amount owed.

If I was in place of Vijay Mallya and if my cash flows had improved significantly as it has for him, I would go to the oil companies and return the money as early as I could.

avinash narula

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Comments

Good article but you are not Vijay Mallya and he is not big B. Because Mallya does not believe in returning any money!! He probably spends about 400 crores on personal expenses a year!

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