SBI declares Vijay Mallya, Kingfisher Airlines, UBL wilful defaulters – After a stretched legal battle, State Bank of India (SBI) has declared industrialist Vijay Mallya a ‘wilful defaulter’ for defaults on nearly Rs 7,000 crore loans to the Kingfisher Airlines.
After the Bombay High Court in August this year permitted Mallya to be represented by his legal counsels, SBI approached the Supreme Court challenging the HC order, saying that HC order dishonored the RBI rules on grievance redressal committee that permit only the borrower to be present his case in person.
However, the Supreme Court sustained the High Court verdict and asked SBI to consider this only as a one-off instance and allow Mallya’s lawyers to represent him at the grievance redressal committee meeting which was held recently. However, the lawyers could not present a suitable case of genuine distress of Mallya and SBI announced them as wilful defaulters, the source added.
This February, SBI had taken control of the airline’s prime property Kingfisher House, near the city airport, after a long-drawn-out court battle. The 17,000 sqft-property at Vile Parle near the domestic terminal is estimated at around Rs 100 crore.
Kingfisher, started by Mallya in May 2005 was grounded since October 2012, and the airline lost its flying licence two months later. Banks are now levying 15.5 per cent compounded interest on this principal amount, which have not been retuned since January 2013 which would take its overall dues to over Rs 8,000 crore.