Jaykay767,
There are various factors for a business to collapse - not just embezzlement, though that too can be one among many.
The viability of a business under distress can be identified, along with a combination of other variables, via - cash stress, top management changes, sudden upheavals of business units, operating units being hived off, distress sales, unsound business practices etc.
Only a detailed study of the micro & macro variables in Spicejet would give a clearer picture. Together with the pressure of banks, and unless the owners pump money, the business cannot operate on a continued cash deficit. The Ministry has also acknowledged that collapse of Spicejet would hit the industry, and it is in a quandry now. If business is profitable, Kalanidhi Maran could very well pump in money from his other profitable ventures since he owns majority of the shares?
Do you have any evidence that the govt. has an agenda against companies that are based from the south?