Vijay Mallya lashes out at banks for sparing bigger defaulters

SBI had filed three other applications, including one seeking Mallya’s arrest and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.

By: ENS Economic Bureau | Mumbai | Published:March 7, 2016 1:56 am
Vijay Mallya, Vijay Mallya usl, Vijay Mallya quits, Vijay Mallya kingfisher, Vijay Mallya news, business news, india news Kingfisher chairman Vijay Mallya

Chairman of defunct Kingfisher Airlines Vijay Mallya on Sunday lashed out against banks for not declaring borrowers who have defaulted bigger amounts as willful defaulters and making him a “poster boy” of banks’ non-performing assets (NPAs).

“None of these large borrowers (whose debt is significantly more than the KFA debt) have been declared wilful defaulters, but unfortunately, UB Holdings and I have been declared wilful defaulters by certain banks on technical grounds. I have legally challenged these declarations,” Mallya said in a statement. He said he has made available Rs 2,494 crore to banks and is trying to work out a one-time settlement with banks. The Debt Recovery Tribunal (DRT) will on Monday pass orders on SBI’s application seeking the lenders’ first right on the $75-million payout from Diageo to Mallya under a recent deal.

SBI had filed three other applications, including one seeking Mallya’s arrest and impounding of his passport, as the bank approached DRT seeking action against him for defaulting on loans.

“Despite pledging blue chip securities and depositing significant amounts in court, a successful disinformation campaign has ensured my becoming the poster boy of all bank NPAs,” Mallya said. “I feel that the time has come to clarify my position in order to avoid this relentless attack on my reputation,” he said. Clarifying his position, Mallya said, “Kingfisher was launched on the basis of a viable business plan vetted by SBI Capital Markets and renowned International aviation consultants, but despite every effort, it was an unfortunate commercial failure caused by macro economic factors and then government policies.”

The truth about Kingfisher Airlines and its financial stress due to external factors has been reported by SBI to the RBI in their letter dated January 31, 2012. “After the closure of the airline, since April, 2013, banks and their assignees have recovered, in cash, an aggregate of Rs 1,244 crore from sale of pledged shares. In addition an aggregate of Rs 600 crore is lying deposited in the Karnataka High Court (since July 2013) and a further sum of Rs 650 crore belonging to United Breweries Holdings has been deposited in the Karnataka High Court since early 2014, being sums realised from the sale proceeds received by United Breweries Holdings from the sale of shares in United Spirits to Diageo Plc in July 2013,” he said.

Refuting reports of a fraud, he said, “all the enquiries conducted have failed to find any evidence of misappropriation of funds by Kingfisher Airlines or myself for the simple reason that the allegations and the innuendo to this effect is plainly false.”
“My group directly invested over Rs 4,000 crore in Kingfisher Airlines itself which investment stands fully impaired. It is not as though it is only the bank debt that has suffered. The banks will recover a substantial part of their debt and my group’s loss is permanent,” Mallya said.

On reports about him planning to escape from the country, Mallya said, “I have neither the intention nor any reason to abscond. I have been a non resident for almost 28 years and the RBI has acknowledged this in writing. I am also honoured to be a member of the Rajya Sabha.” Mallya said he has been summoned before various investigative agencies and duly attended and cooperated with each of them. “I will continue to do so. My statement as to my personal future after quitting Diageo/USL — that I want to spend more time in England closer to my children — has been grossly distorted and misportrayed. I wish to reduce my business commitments gradually and devote more time to my family…,” he said.

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  1. A
    American
    Mar 8, 2016 at 6:46 am
    If supreme Court and RBI curb all big defaulters, the Indian economy will be on verge of stability. But both supreme Court and RBI seem puppets of Indian politicians. So definitely these are the reasons why JNU continue anti-indian slogans.
    Reply
  2. A
    American
    Mar 8, 2016 at 1:12 pm
    Even Bollywood actor's and actresses should show some civic sence. Deepika paduke hangs around with his son. Does she even know about the farmers who commit suicide due to bank pressure ?
    Reply
    1. J
      Jai
      Mar 7, 2016 at 2:44 am
      Iran's billionaire tycoon Babak Zanjani has been sentenced to death for corruption, a judicial official said Sunday, after a long trial in which he was accused of fraudulently pocketing $2.8 billion.
      Reply
      1. J
        Jaya Hariharan
        Mar 7, 2016 at 6:40 pm
        Mr Mallya you should look not outside - look within! R U a defaulter or not? I should not ask as to "R U Ashed or not?" as it is clear that u have no shame. As any ordinary person having some shame, would hang him/herself and end life whereas you r still talking shameless things. Any ordinary person would have asked those r paying money to deposit it to your creditors!! Shameless fellow.
        Reply
        1. S
          S.RAMACHANDRAN
          Mar 7, 2016 at 2:31 am
          THE STATEMENT OF MR MALLYA IS FULL OF LIES.I DO NOT KNOW HOW SBI HAS WRITTEN TO RBI IN 2012 THAT THE AIRLINES OPERATIONS HAVE FAILED DUE TO FACTORS BEYOND THEIR CONTROL AND NOW THE SAME BANK IS WRITING THAT MALLYA IS A WILL FUL DEFAULTER. THIS MATTER NEEDS TO BE INVESTIGATED BY BANKS BOARD BUREAU AND ALSO HOW SBI CAPITAL PROCESSED THE PROPOSAL OFPROJECT AND DECLARED VIABLE
          Reply
          1. S
            S.Nagaraja Rao
            Mar 7, 2016 at 2:20 pm
            Vijay Mallaya is defauler of loans. It is the bank to decide on whom to file a case or not He can not question the bank or take the plea that there are many more defaulters who have taken loans more than his loan. It is clearly visible how he has become an MP. Our politician should be ashamed for recommending such man to be the MP. It is shameful for the erst while great MPs who had character and sacrificed. He has taken a loan of more than Rs. 8000 crores from various banks. Atleast he should see the farmers who are committing suicide unable to repay the bank loans of simple Rs,5 to 10 lakhs. Without waiting further all his property should be confiscated by the ED. He is a evader of loans. That is all.
            Reply
            1. V
              Vasudevan Venugopal
              Mar 7, 2016 at 4:08 am
              He is a bigger defaulter!
              Reply
              1. A
                Augustus
                Mar 7, 2016 at 4:23 am
                These are the true hindu anti-nationals, they live on tax payers money, terrorists are much better as they can be killed, but these anti-nationals cannot be killed and especially if they are close to ruling party one cannot touch them
                Reply
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