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Timeline: Vijay Mallya’s Kingfisher turbulence pushes his UB group on the rocks

All you need to know about Vijay Mallya's defaulting on loans of Rs 9,000 crore.

By: ENS Economic Bureau | Updated: March 12, 2016 5:31:30 am
vijay mallya, vijay mallya debt, kighfisher, kingfisher airlines, mallya kingfisher, mallya kingfisher debt, vijay mallya loan default, vijay mallya loan amount, ub group, mallya ub group, United Breweries, mallya news, business news, india news, latest news Kingfisher Airlines, which was started by Vijay Mallya in 2003, however became the group’s bottomless pit and precipitated the default on loans taken to revive the sagging fortunes of the carrier. (Source: Express archive)

On Wednesday, the Supreme Court asked Vijay Mallya, the chairman of the UB Group and a Rajya Sabha member, to be present before it on March 30, with his passport. Mallya is facing legal proceedings for allegedly defaulting on loans of Rs 9,000 crore.

Read | Vijay Mallya clarifies: Did not flee from India, neither am I an absconder 

A consortium of banks has moved the court seeking the freezing of his passport. Mallya became the chairman of liquor firm United Breweries in 1983 at the age of 28, following his father’s demise.

Read | No laxity on action against Mallya: SBI

Keystrokes: Vijay Mallya

Since then, the group grew into a multi-national conglomerate of over 60 companies.

Kingfisher Airlines, which was started by Mallya in 2003, however became the group’s bottomless pit and precipitated the default on loans taken to revive the sagging fortunes of the carrier, especially after it took over budget carrier Air Deccan.

Read | What is Vijay Mallya accused of?

A chronology of how the airline crash landed

May 9, 2005: Kingfisher Airlines’ (KFA) maiden flight.

June 2, 2007: Mallya buys Air Deccan.

November 4, 2009: Kingfisher reports a second quarter net loss of Rs 418.77 crore, lays off nearly 100 pilots.

Read | Vijay Mallya FERA case: After 17 years, final arguments to begin

November 25, 2010: KFA board approves debt recast package.

September 15, 2011: The company’s auditors point to the carrier’s accumulated losses at the end of the financial year being more than 50% of its net worth.

December 1, 2011: Mumbai International Airport Pvt Ltd sends a notice to the airline to pay a Rs 90-crore outstanding due.

Read | Mallya flew out of India on March 2, says A-G; SC issues notice on banks’ plea 

December 9, 2011: The Service Tax Department freezes accounts of KFA for non-payment of Rs 70 crore.

March 17, 2012: Revenue Department threatens to take KFA to court over alleged service tax evasion.

June 27, 2012: Kingfisher shares tumble following reports that 34 aircraft have been possessed due to non-payment of lease rentals.

July 5, 2012: A 15-day time period given by the company’s lenders to come up with a turnaround plan.

September 4, 2012: Mallya gives guarantees worth Rs 5,904 crore for the carrier’s loans and other liabilities in 2011-12.

September 28, 2012: Turning down a request for Rs 200-crore working capital loan, the SBI-led lenders consortium asks SBI Capitals to chalk out a fresh revival plan.

October 2, 2012: The carrier declared partial lock-out following a strike by a section of its employees.

October 12, 2012: Non-bailable arrest warrant issued against Mallya, and four other directors for non-appearance in cases relating to bouncing of cheques issued in favour of GMR Hyderabad International Airport towards user charges.

October 20, 2012: The airline’s permit gets suspended

December 5, 2012: SBI, lead banker in the 17-lenders consortium that extended Rs 7,000 crore worth loans to the carrier, said banks are trying to do everything to find a solution.

December 31, 2012: The carrier loses its flying licence as the DGCA refused to renew its Air Operator Permit (AOP).

February 21, 2013: The Special Court for Economic Offences, Bangalore, issues summons to Mallya on a criminal case filed by the Income-Tax Department for not remitting to the government tax deducted at source.

April 3, 2013: Bombay High Court refuses to grant any interim relief to United Breweries Holdings, which had filed a petition to prevent KFAs’ lenders from selling pledged shares of UB group companies.

July 31, 2014: Mallya appears before the Special Court in Bangalore, in connection with 3 criminal cases booked against him by the I-T Department. Court grants him bail.

August 9, 2014: CBI institutes a preliminary inquiry against IDBI Bank and KFA. The bank had sanctioned a loan of Rs 950 crore, despite KFA having a negative rating.

September 2, 2014: SC denies relief to KFA challenging the decision of the Grievance Redressal Committee of United Bank of India to declare the airline and its promoter Mallya as wilful defaulters.

February 24, 2015: The 17-bank consortium takes over possession of Kingfisher House.

April 25, 2015: Alleging fund diversion to KFA and other UB

Group entities, United Spirits’ new owner Diageo asks Mallya to step down as chairman and director of the liquor firm.

October 10, 2015: The CBI conducts searches at Mallya’s offices.

December 10, 2015: The CBI questions Mallya as part of the probe into alleged wilful default of Rs 900-crore loan in conspiracy with unknown officials of IDBI bank.

February 16, 2016: PNB declares UB Holdings ‘wilful defaulter’

February 27, 2016: The SBI-led consortium of lenders moves the debt recovery tribunal (DRT) to attach Mallya’s passport.

March 7, 2016: DRT asks Diageo to withhold non-compete payment to Mallya.

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