Friday, October 05, 2012

SBI Chairman and Kingfisher Mr. Mallya

SBI Chairman has agreed to pay Rs.60.00 crores to NPA declared and defaulting company Kingfisher on humanitarian ground so that sick company Kingfisher can pay salary to employees.

Is SBI Chairman authorized by investors and depositors to permit such charity to Kingfisher?

Is such whimsical decision of SBI Chairman legally valid and reasonable?

May I ask Mr. Chairman will he pay similarly to other defaulting companies which are unable to pay salary to their staff?

If yes he should be ready with billions of rupees in hand to distribute such charity to hundreds of such companies who have not only defaulted in repayment of bank’s dues in time but also failed to pay salaries to their staff though promoters of such sick companies spend lavishly on their own families. 

There are several small scale industries and medium size industries of the same promoter which are running in loss and not in a position to pay salary to their staff but some other companies of same promoters are booking huge profit.

Will SBI afford making charity for all such sick companies or it is only for Kingfisher Company?

Will it be justified for SBI Chairman to sanction Rs.50.00 crore to Kingfisher on humanitarian ground keeping in view that SBI is owned by millions  of depositors and investors?

Will SEBI, RBI, GOI and investors and depositors of State Bank allow such charity to a sinking company?

Has Credit Approval Committee or Management Credit approval Committee has approved such charity which has been unilaterally announced  by SBI chairman in response to media news about suicide of a woman , wife of staff of Kingfisher?

Is such hasty decision taken by SBI supremo under pressure of some top ranked minister?

Kingfisher to get ‘humanitarian’ aid from banks

UMBAI: State Bank of India on Friday said Kingfisher lenders have decided to release funds to the debt-ridden airline on "humanitarian grounds" considering that its employees have not been paid for the past seven months.

"The money that has been released by the tax authorities, 80 per cent of that will be made available to the company on humanitarian grounds, specifically to pay salaries of the employees," SBI chairman Pratip Chaudhuritold reporters here.

Sources had said bankers after an emergency meeting on Thursday had agreed to release funds from escrow accounts, which is likely to fetch up to Rs 60 crore for the carrier.

SBI heads the consortium of 17 lenders to the crippled carrier. Chaudhuri, however, did not divulge the total quantum of the money banks were having.

Collectively, the 17-bank consortium has Rs 7,000-crore outstanding from the Vijay Mallya-promoted airline.

The SBI chief said that he does not know how much of a solace this would offer. "I don't know how adequate that (the release of money) would be."

The wife of a Delhi-based technician of the airline, which has been grounded since Sunday following a strike by its engineers and a section of pilots, allegedly committed suicide yesterday due to the financial troubles in the family and blamed the airline for it in a suicide note.

The aviation ministry and the sector regulator DGCA have been insisting to keep the fleet grounded unless concerns around safety and wages are solved.

The striking employees have been asking for an immediate payment of salary for three months out of the total seven months outstanding for resuming duties.

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