Some facts behind the scene
Siddhartha of Cafe Coffee Day was availing handsome lending during UPA era as usual and when he understood he will be unable to pay or service it back, his father-in-law, the CM of Karnataka, SM Krishna stepped in to find a solution. (Ironically while his father-in-law was the CM of the state, Siddhartha used to threaten bank officials when asked to pay back the debt.)
10 Janpath for some reasons couldn’t help them and SM Krishna abruptly left Congress and joined BJP.
As usual, Modi and Jaitley didn’t help either and allowed the law to take its own course.
It is a very tough time for entrepreneurs NOW who are enjoying entrepreneurship at the cost of low funding, exaggerated funding, immoral funding, or political funding in India.
For general information, all the businessmen who are willful defaulters, their passport details are with immigration and they are not able to fly out of India ( for example – son of Ponty Chadda, Goel Saheb ( Jet Airways), Anubhav Agarwal (RNA AA ).
Another angle to look at it is that debts are given and funding done of a corporate is from common man’s deposits, tax collections and the Government keeps trying to plug the loophole. Pay or perish from the business. Return or suffer the consequences.
A common man should get a reasonable FD rate of 10-12% but settles for 6-7% which is equivalent to the actual inflation rate. On the other hand, many corporates for the last 60 years have enjoyed ( ultra heavenly life) with unethical funding. This is being stopped now.
Henceforth, the current business scenario is pessimistic, not because the Government wants so, but it’s due to cleansing, formatting, and restarting mode at the banking level.
Worried about Anil Ambani now?
There are many Page 3 businessmen who are in queue – being grilled day and night.
Share Market rise and fall is not the right indicator of the whole economy.
The unprecedented rise of the index is not going to happen soon.