Banks moved to Supreme Court to stop Vijay Mallya
We already know that Vijay Mallya is an Indian businessman and politician and UB’s former chairman. He owns the Royal Challengers Bangalore team, and also he owns two Indian football clubs. He owns Ferraris, he even owns a Edsel.
What did banks said:
The banks said, “The HC failed to protect the interest of the petitioner banks who are yet to recover an amount in excess of Rs 9,000 crore from Kingfisher Airlines, United Breweries Ltd, Vijay Mallya and Kingfisher Finvest (India) Ltd.
“Petitioner banks individually advanced to Kingfisher Airlines loans of thousands of crores of rupees. By way of a Master Debt Recast Agreement (MDRA) of December 21, 2010 and other related documents, the existing lands were restructured.
What did Mallya expressed?
Recently he expressed a desire to settle in London following the Rs 515 crore deal with Diageo, the banks said through attorney general Mukul Rohatgi. Mallya’s spokesperson said that she had no information about his where abouts and that he was communicating only through email.
What did banks urged?
The banks urged the court to stop him from going abroad as they claimed he owed them over Rs 9,000 crore. The banks were represented by attorney general Mukul Rohatgi. The banks had advanced loans of over 9,000 crore rupees to his firm.
Mallya still holds 33% in United Breweries, worth 7,000 crore. But more than half is pledged. 22% interest in Mangalore Chemicals and Fertilizers, worth 140cr, and 52% in UB holdings. The consortium of banks, in their appeal, has assailed the March 4 order of the Karnataka High Court refusing an ex-parte ad interim order against Mallya, England-based Diageo Plc and United Spirits Limited.
The liquor baron is also conform a money laundering case against him by the Enforcement Directorate for allegedly sending abroad Rs 900 crore that his airline borrowed from bank.