The Union Finance Ministry alerted the people against 9500 high risk non-banking financial companies. It are found by the Finance Ministry Financial Intelligence Unit as no complaint to the Prevention of Money Laundering Act Rules.
After the demonetization of high value currency notes it were found indulging illegally converting the currency notes from black to white money on getting heafty payment as cut and commission from people having black money.
Sometime back the Union Government cancelled the registration of some two lakh companies being fake companies only dealing with Hawala transactions and drug and smuggling illegal trade. Most of such ‘sign board’ companies lure people on false fraud lucrative promises of easy and high monetary gains within short time. After collecting crores of rupees the companies disappear without any trace.
Such fake companies have created a suspicious atmosphere against genuine trade and industry. It is a very dangerous trend and Government must do everything to restore public confidence in the Indian Trade, Industry and Business. Otherwise the aims and objective of ‘Made in India’ cannot be achieved.
The Punjab National Bank loan scam the Union Finance Ministry and the Reserve Bank of India have taken up the Job of reviewing entire banking system and non-banking financial companies to weed out corrupt people from the system and evolving methods to fix specific responsibilities at every stage in the particular post holders to eliminate such scam in the banking sector.
The Assochem (Associated Chamber of Commerce and Industry) has also cautioned the Government that as panic reaction of PNB scandal the trade, industry and commerce should be denied or starved of bank financing with loans and document facilities.
Now the Vijay Mallya has become a test case. The House of Mallya was a very reputed business and industry and its U.B. brand in India made foreign liquor was a world brand with exports even in developed nations.
When the Congress led UPA Government and BJP led NDA Government opened the civil aviation for the private sector Vijay Mallya branched out in aviation field also by launching King Fisher Airlines.
In all such ventures there is risk of loss and profit success or failure. Aviation is a business of very high investment. But unfortunately for Mallya it proved to be run out venture. But there is one big question that in Nehru regime the profit earning private airlines of Tata Air and Birla’s Bharat Airways were nationalized form Air India and Indian Airlines as Central Government undertaking.
Most of the time these airlines uncured losses and government had to bear the losses and provide budgetary support to keep it in business. But now it is so heavy financial liability that the Government has decided to disinvestment and hand over back to private sector. But even now no one is coming forward to have it as there are huge outstanding loans in it to be repaid.
If Vijay Mallya could not run King Fisher Airlines as earning concern so the case of Government of India that it could not run Air India in profit and it is under heavy losses.