Who is the worst? 

High seat to Jail! At whose cost?


Recently we have seen a spate of financial defaults where the so-called giants in industry and business have financially played havoc. Mallya, Sahara Chief Subroto Roy, Unitech Chandras list goes on and on and on! Question came to my mind who is the worst of the lot? I missed on adding the name of our local hero from Pune D S Kulkarni, who has joined the elite list though not on that scale.

In such matters two major aspects need to be checked. Whose action has caused the problems to the health of banking & financial system, and whose action has caused the most damage to the livelihood of individuals besides the banking system? The first group which has caused the issues to banking system are led by Mallya. Before he could be “caught”, he managed to change ownership of companies and to my knowledge companies are running reasonably alright! It appears that both Mallya and the new management have managed to siphon money to tax free heavens. Mallya apparently has billions of dollars in his personal name and has managed to evade tax in many locations in the world. How to get money back from such people? Assets he created all over India have become tricky to dispose-off, now that these have become tainted assets. Same issue is there in case of Amby valley, near Pune, huge asset created by Roy!

How to decide who is the worst of the lot? My thought process tells me that those who have cheated individuals, many of them retired, who invested most of their life savings, are the worst culprits. By this test Mallya may appear to be a saint. No individual has launched any complaint against Mallya. By this logic other three appear to be major culprits. Roy and Chandra are in jail for some time, thanks to Supreme Court; has their families’ life style changed, no way! They have no money to return but have enough money to blow! Our friend D S Kulkarni’s family lives in rented flat! So sad! Not really, the flat is in Trump Tower in Pune with a rent Rs. 400,000/ per month! Extremely high by Indian standards. Mallya’s case is totally different. He moved to UK when there was no criminal case against him. So, when he entered UK, he was not “tainted”! The propah British law says that when Mallya entered Britain, he was not “tainted”. So procedures had to be followed, as he was not a fugitive when he entered Britain! British took their own sweet time to start the extradition processes. The Indian authorities are now tensed up and keeping their fingers crossed. In another similar case in Britain, the judge who will be handling Mallya’s case gave a decision that the concerned culprit will not be extradited, as jails in India are in extremely poor condition. Same logic may be applied in Mallya’s case!

I don’t have knowledge of various laws but my common sense tells me that such people’s factories shut down, businesses close down; the so-called owners are still having fun whether there is profit or loss.  The workers, financial institutes, and vendors are facing the main brunt. I remember when in Pune, Garware Nylons shut down, the loss was to the workers, vendors and banks! Garware’s have been moving around in their helicopters!

Why does this happen? How is this allowed to happen? Where is the lacuna? When any organization starts, it needs money; it gets money in the form of equity, loans and fixed deposits and working capital. The persons who start the company are also expected to put in the seed capital. Everything works quite all right in the initial phase. How business runs, depends on many factors some under control and some not under control. When people invest money in business as equity, it is a risk taken knowingly. When business does well people get dividend; and at some stage some investors liquidate their shares, based on share market variation and make their kill. But when the business does not perform well they are in for a loss. This is a known risk for investors. Same things happen in case of fixed deposits by people. Interests are paid on time, whenever requested deposits are refunded. Problems begin when businesses start floundering. Promoters, at this stage probably start treating FD’s as equity! If business conditions deteriorate further then the deposits become Ponzi schemes! Take deposits from someone promising high rate of interest and try to pay interest to older depositors. Vicious circle goes on and on and on till the court and Police cases start. Unfortunately for individuals, the first right on recovery from such organizations is with financial institutions!

In the meanwhile, the smart promoters have done something in between. They take deposit under the name of one company and transfer the money to their other businesses. This is done like hedging when intentions are not good . So, their other businesses run well. The assets and incomes made in these businesses are not in the name of original promoters of the main company. You don’t need to own a helicopter or a Mercedes to use it! 😃Holidays in cool climes continue because it is never done under parent company. Wealth is flaunted and social activities continue. I am by no means a socialist or a communist but what I have just explained is simply cheating. Small vendors, retired teachers, others are affected badly. This is what is happening in case of D S Kulkarni. He even has gumption to claim that his business started suffering when Lehman Brothers collapsed in 2008!

How do these people maintain their lifestyle even after they are in jail or court cases are on? Here is an example from building trade. It is pretty simple. Company A buys a plot of land. B, C, D and E are other companies from the group. The plot is finally purchased by E following the straight path via B/C/D. By the time plot is in possession of E its price maybe five times! This is loaded on the project to sell homes to us. A is the company who takes FD’s from people but income of A is meagre and this money is routed to “other” companies. A & E ownerships may have some connect but B, C, D are owned by other family members or are trusts. These companies will have high profits! Another way of making the killing is that when E sells a home either B/C/D gets say 3 % commission on each sell as they are “Sells Agents” for E! Got it.

What is the solution? Believe in market rumours! Smoke is seen only when there is fire! It is impossible to know which organization can go into difficult times. The moment you hear some story, withdraw money from such organizations. Don’t keep on hoping that they will come up again! If they do come up put your hard money with them again! After all it’s your money! My take is that those who put individuals in difficulty are worst of the lot!


I and Jaya were travelling by Uber the other day. When the trip started, the windows were down and AC was OFF. It was stifling hot. Jaya told the driver to put the AC on. Our journey was not for more than 20 minutes. The driver said that he cannot put the AC on as the fuel level in the car was very low. He in fact told us that he will take a diversion to fill up the petrol in the car. From where we started, trip to petrol station and back, with queue at the station, would have taken at least 25 minutes. I said please stop the car and cancel the trip we do not have spare 25 minutes for a 20 minute journey. He said he will continue and reluctantly put the AC on.

Later on the driver was cribbing all the time and I asked him why he had taken a trip though fuel was low? He had no answer. He also did not know the faster/shorter routes other than those shown by the GPS. When I started giving him the direction, he was unhappy and told me that he lived in the same area as I did and had a Rs.10/ million bungalow of his own. He also said that he was the “Barathe Patil” of that area, a title given in olden times to the local rulers. I told him that I did not understand the significance of this information. He felt that I was treating him poorly because he was a driver! But I only was looking to reach my destination in 20 minutes!

Now I understood his problem. Probably life was not treating him well moneywise, he had a property which must be in dispute; about 10/15 years back the same property was not even worth half a million Rupees. But in the minds of our friend he was still from the ruling class, though he may not get much time to rule, after driving an Uber taxi for the whole day. The titles from the olden days are now only for name sake and persons holding them have no real power in today’s modern society.

When a decision was taken in India to do away with Red Beacon on top of cars of VIP’s, the ruling class (Read politicians, govt employees)  was very unhappy because their so called importance was just taken away. That was the feeling in the mind of ruling class. Government thought that only a couple of people in India need this beacon along with ambulances, and fire-fighting trucks. A couple of months after this directive was published, I saw one vehicle with a beacon; I knew that the vehicle was being  used by middle level officer in the Government, known to me. I asked the driver why the beacon was not removed. He said their office had not received the directive, yet. Come on, the whole world including chief ministers are moving around without beacons but this guy with middle management title did not want to remove it. Loss of power? What power? Why did these people think that they got power just by putting a beacon on top of their cars? But these folks just wanted to cling to so-called power till the last moment.

What power does this beacon give? I was never intimidated by these cars and people using them but there must be a large number of people in the society who must be showing them respect because of the beacon. These guys were allowed to pass through toll booths without paying toll. They could park their vehicles in no parking zone, police would be afraid to touch them.

In olden days, we had various small states which were ruled by many small time kings. At the time of independence these kingdoms were dissolved and merged into India. In 1971, the 26th amendment to the Constitution of India withdrew official recognition of all official symbols of princely India, including titles and privileges, and abolished the remuneration of the princes by privy purses. As a result, even titular heads of the former princely states ceased to exist. Years after this was achieved, many of the so called Rajas call themselves by old titles and behave the same way. Many people also treat them with “respect”  mainly out of fear!

Why does this happen? These titles have got embedded into DNAs of Rajas and they cannot think otherwise. Some people, even today, put the title of Raje at the end of their name! For example Ashok Raje and then their surname! They are so much used to take advantage of their position that they now feel helpless without titles. In northern and eastern India feudal system of zamindari/ subhedari (Land owners & favored people who were gifted lands by the then kings) existed for a few centuries. These landlords behaved like Kings and could get away with murder, literally. They used wives of their laborers as sex tools. The whole family would just live on the mercy of these Subhedars/Zamindars. Changing their way of life, achieved  through land reforms,  from their DNA was like changing their blood group! But this change has taken place.

In olden respect was achieved by titles and in modern times by red beacon on the car! In life one needs to earn respect by own behavior, achievements (not monetary), and humility.  It is how you get along with all strata of people in the society, that is more important than your so called title of Ex Raje or MP or MLA. Those who have achieved in life earn their respect and they don’t keep people as if they own them! I know of an ex-Mayor of Pune. One day I was driving in a car somewhere and a person went on his bike in the opposite direction. The face looked familiar but I could not place him. Later on it suddenly struck me. He was Mr. Ankush Kakade whose Mayor ship term had ended only the previous day; on the next day he was going somewhere on his own bike, no showmanship. No tantrums! Probably in public life we need more Ankush Kakade’s! An idea struck me suddenly. In the beaconless cars Government must put photograph of Ankush Kakade to give everybody reminder to all modern day Rajas, that they should emulate Kakade and not some Ashok Raje! Return their official cars and homes when their term is over and not to cling to benefits offered by the position! My friends I will say that India is progressing when this is achieved.