Arun Jaitley Clears Aviation Industry & Govt From Kingfisher Mess

Arun Jaitley compared the Kingfisher’s functioning with GoAir, SpiceJet, Jet, Indigo.

Union Finance Minister Arun Jaitley, RBI Governor Raghuram Govind Rajan and Ravi Karunanayake, Finance Minister of Sri Lanka at IMF 2016 Spring Summit in Washington DC on Friday, 15 April 2016. (Photo: PTI)

Finance Minister Arun Jaitley feels the failure of the Vijay Mallya-led defunct carrier Kingfisher had more to do with the individual company’s business model than the aviation industry, and that every step is being taken to recover the money it owes to banks.

The airline’s (Kingfisher’s) problem is not a sectoral problem. This is for the simple reason that most of the other airlines have lasted the challenging period, turned around and are now making profits. Jet is making a profit. Indigo has made huge profits. SpiceJet is making profits. GoAir is making profits. I’m not giving a final opinion. But it could be attributed to the business model of a particular company. 

Arun Jaitley, Finance Minister

Jaitley said this even as India suspended Mallya’s diplomatic passport for four weeks and the Enforcement Directorate asked a special court to issue a non-bailable warrant against him.

Also read: MEA Suspends Mallya’s Passport, ED Seeks Non-Bailable Warrant

The finance minister was attending the spring meetings of the World Bank and the International Monetary Fund, along with Reserve Bank of India Governor Raghuram Rajan, Economic Affairs Secretary Shaktikanta Das and Chief Economic Advisor Arvind Subramanian.

Jaitley said his government also had nothing to do with Mallya’s case.

I don’t think it had anything to do with our government. A lot of his cases were also locked up in courts. When he was in India, I understand from the banking sector that almost every recovery and every step was challenged in the courts. 

Arun Jaitley, Finance Minister

He added that as far as the matter of recoveries is concerned, the banks and investigation agencies are doing their part.

Mallya is wanted by the Enforcement Directorate on charges of misappropriating Rs 9000 crore he received as bank loans. He left India on 2 March and tweeted a week later that he is not an absconder.