Why is the government financing Kingfisher Airline?

Indian Oil Corporation (IOC) has invoked Rs. 50 crore guarantee of Kingfisher after a cheque issued by Kingfisher bounced. It was further reported that Kingfisher owes nearly Rs. 785 crores to the oil companies. I simply do not understand why Vijay Mallaya is getting such heavy credit from the government. The daily interest on Rs. 785 crores at just 12% works out to be Rs. 25 lakhs. Vijay Mallaya is saving this amount. He needs to sell his shares in the company ot sell any of his assets and pay the oil companies. When he owes so much of money, why did he go buy Gandhiji’s articles for Rs. 9 crores?

If you ask me, I do not understand why the government is not taking serious action against Kingfisher? When we make late payment to any government department, we have to pay a fine. Is Vijay Mallaya paying interest and fine on the delayed payment. We need the answers from the government. If Vijay Mallaya does not have the money to run the airline, I think he should get out of the business.

avinash narula

Avinash Narula

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