'Unfair to tag one-time loan defaulter like Mallya as thief', says Union Minister Nitin Gadkari

Union Minister Nitin Gadkari on Thursday opined that it is unfair to tag a "one-time loan defaulter Vijay Mallyaji" as a thief, adding that the embattled businessman has a four-decade-long track record of timely debt servicing.

Gadkari, however, clarified that he has no business dealing with Mallya, who faces extradition from the UK for alleged bank fraud and money laundering amounting to an estimated Rs 9,000 crore.

"For 40 years Mallya was regularly paying interest on loans. After entering the aviation sector, he started facing problems, and suddenly he became a thief? If a person repays the interest for 50 years, and if he defaults once, then suddenly everything is fraud? This mindset is not correct," Gadkari said.

Gadkari said the loan he was referring to was from the Maharashtra government-owned entity Sicom to Mallya, extended 40 years ago, which he repaid on time without any default. Stating that ups and downs are part and parcel of any business, the road transport minister said if someone goes through a downward cycle, then he or she has to be supported.

"There are risks in the business, be it banking or insurance, there are ups and downs. But, if the mistakes are bona fide, because of global or internal factors in the economy like a recession, then that person who is facing difficulties must be given support," the minister said.

READ: Who Leaves With 300 Bags?: Enforcement Directorate On Vijay Mallya

Likening an election loss to a business failure, he recalled how he lost an election when he was all of 26, but underlined that the loss did not mean that his political career ended.

"If Nirav Modi or Vijay Mallyaji has committed (financial) fraud then send them to jail, but whoever comes in distress, and if we label them as fraudster then our economy will not progress," he said.

Earlier this week, a London court had ordered Mallya's extradition, in a major boost to the government's efforts to bring back the fugitive businessman. Ahead of the extradition hearing, the 62-year-old former boss of the now-defunct Kingfisher Airlines offered to repay the entire principal amount to banks.