Plea in SC for restraining Vijay Mallya from leaving India


Updated

New Delhi, Mar 8 (PTI): The Supreme Court today agreed to hear tomorrow a plea filed by a consortium of 17 PSU banks seeking a direction that industrialist Vijay Mallya be restrained from leaving India.

"List it for hearing tomorrow," a bench comprising Chief Justice T S Thakur and Justice U U Lalit said, when Attorney General Mukul Rohatgi, appearing for PSU banks, mentioned the matter for urgent hearing.

Rohatgi said that the plea has been moved by 17 banks, including State Bank of India, against Mallya whose various firms have taken loan from them.
He also said that the dues run into thousands of crores.

Earlier Report

Tribunal bars Mallya from accessing $75 mn from Diageo deal

Bengaluru, Mar 7 (PTI): In a major setback for liquor baron Vijay Mallya, the Debt Recovery Tribunal (DRT) today barred him from accessing USD 75 million (Rs 515 crore) exit payment from Diageo till the loan default case with State Bank of India is settled.

DRT, allowing SBI plea, restrained Diageo from disbursing the money for now and set March 28 as the next date of hearing.

SBI had sought DRT's intervention in seeking the lenders' first right on the USD 75-million payout from Diageo to Mallya as part of deal last month.

Under the deal Mallya was to step down as chairman of India's top spirits company United Spirits Ltd in a settlement with its new owner, Britain's Diageo. Mallya was to settle down in London after the deal.

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

DRT in its order restraining Diageo from disbursing USD 75 billion, said the amount has been attached pending disposal of original application.

It directed Mallya and the companies concerned to disclose the details of the terminal agreement.

The order came hours after Mallya said he was in talks with banks for a one-time settlement of debt that his now-defunct Kingfisher Airlines owes.

In a statement late last night, he had also stated that he had no plans to run away from his creditors.

SBI, which leads the consortium of 17 banks that lent money to the grounded Kingfisher Airlines, had moved DRT against the airline's chairman Mallya in its bid to recover Rs 7,800 crore. SBI had an exposure of over Rs 1,600 crore to the now defunct airline. Since January 2012, the loan was not serviced.

Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, Uco Bank and Dena Bank among others.

Last year, SBI declared Mallya as wilful defaulter while PNB had followed suit last month to declare him, his group holding company United Breweries Holdings and Kingfisher Airlines as wilful defaulters.

Diageo was to pay Mallya USD 40 million immediately and the balance in equal installments over the next five years.

The deal also absolved Mallya of all liabilities over alleged financial lapses at the company founded by his family.

After the deal with Diageo plc, Mallya, 60, resigned with immediate effect as Chairman of United Spirits Ltd, which the British firm bought in April 2014.

United Spirits, maker of McDowell's No.1 whiskey and Romanov vodka, had sought his resignation after an internal inquiry found he diverted funds to other companies under his control. Mallya has denied any wrongdoing.

Mallya, who took over United Breweries Holdings or UB Group from his father in the 1980s, had last month signed a global five-year "non- compete, non interference and non solicitation" agreement with United Spirits. He was to take on a ceremonial title as founder emeritus of the Diageo unit.

He started Kingfisher Airlines in 2005 but it was grounded in 2012 amid mounting debt.

DRT had on March 4 reserved its orders on the application by SBI seeking the lenders' first right after hearing arguments by both sides.

Delivering the order today, it said: "The defendant (Mallya) temporarily shall not draw the amount mentioned in the present application till disposal of original application as sought by the applicant banks."
It also added: "Diageo plc, Diageo Netherlands and USL shall not dispense the amount to Mallya or any of his agents, nominee or asignee till the disposal of the original application. Amount mentioned in IA is attached.

"The defendants, Diageo plc, Diageo Netherlands and USL are directed to furnish details of the termination agreement arrived between them."

Under fire, a defiant Mallya had yesterday rubbished the charge that he was an "absconder" and said he was making efforts to reach a 'one-time settlement' with banks through additional payments to the lenders.

Denying that "personally" being a "borrower or judgement defaulter", he had flayed the "disinformation campaign" to paint him a "poster boy" of all bad loans.

Questioning the "wilful defaulter" tag by some banks, he had also hit out at them, alleging that they didn't go after borrowers who "owe much more than the amount allegedly owed by Kingfisher Airlines".
Mallya and Kingfisher Airlines owed Rs 7,800 crore to the consortium led by SBI, which had an exposure of over Rs 1,600 crore to the airline.

Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, Uco Bank and Dena Bank.

Last year, SBI declared Mallya as wilful defaulter while Punjab National Bank had also declared him, his group holding company United Breweries Holdings and Kingfisher Airlines as wilful defaulters last month.

As part of the deal, Diageo said it would pay USD 40 million immediately to Mallya with the balance being payable in equal installments over the next five years.

It will also absolve Mallya of all liabilities over alleged financial lapses at the company founded by his family.

 

Earlier Report


ED registers money laundering case against Mallya, others

Mumbai, Mar 7 (PTI) : In fresh trouble for liquor baron Vijay Mallya, the Enforcement Directorate has registered a money laundering case against him and others in connection with the alleged default of over Rs 900 crore loan from IDBI bank.

Official sources said the agency recently filed charges under the Prevention of Money Laundering Act (PMLA) based on an FIR registered last year by CBI in the same case.

They said while the ED's zonal office here has registered the case, sleuths are also looking at the overall financial structure of the now defunct Kingfisher airlines and a separate probe under foreign exchange violation charges could also be initiated.

"Mallya and others will soon be questioned. The agency has collected relevant documents from concerned authorities and the bank in question," they said.

The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint.

The CBI had booked Mallya, director of Kingfisher Airlines, the company, A Raghunathan, Chief Financial Officer of the airlines, and unknown officials of IDBI Bank in its FIR alleging that the loan was sanctioned in violation of norms regarding credit limits.

The CBI action came as part of its wide probe into criminal aspects of loans declared to be non-performing assets by public sector banks.

The ED is looking into the "proceeds of crime" that would have been generated using the slush funds of the alleged loan fraud, they said.

While a DRT order is expected in this case today, ex-Kingfisher airlines employees have also gone public against Mallya and the company alleging they have been cheated of their remuneration and service benefits.

Mallya had yesterday said he is making efforts to reach a 'one-time settlement' with banks through additional payments to the lenders, even as he denied "personally" being a "borrower or judgement defaulter" and alleged that "disinformation campaign" was being played to make him a "poster boy" of all bad loans.

The debt-laden airlines had stopped operations in October 2012.

  

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Comment on this article

  • stan, dubai

    Tue, Mar 08 2016

    Rs 1.14 lakh crore of bad debts: The great government bank write-off. Why Government is not taking action on other defaulters????? Why only on Vijay Mallya??? Yes he is defaulter but action must be taken not with one only..... Catch all the defaulters and put them in Jail or freeze their property.Indians rules are for some one or everybody???

    DisAgree [1] Agree [4] Reply Report Abuse

  • Antonio Crasto Fernandez, Madgao, Goa

    Tue, Mar 08 2016

    VM is having a great time with Indian public money. Having lavish parties, making a great show by offering blue label scotch whiskey etc and not settling the caterers bills are part of his style too. Caterers have to run from pillar to post to get their bills settled often after 1 1/2 - 2 yrs.

    Do his guests know this ??

    DisAgree Agree [2] Reply Report Abuse

  • mohan, mangalore

    Tue, Mar 08 2016

    Malya is stylish business man. any how he lost in kingfisher . holding his money is no meaning He can use that money and repay the banks. without investing one cannot repay. I think there is some business rivelry playing behind Malya.

    DisAgree [1] Agree [7] Reply Report Abuse

  • MASTHAN , DUB

    Tue, Mar 08 2016

    DID IPL PLAYERS RECEIVED THEIR MONEY OR NOT.

    DisAgree [2] Agree [11] Reply Report Abuse

  • Gangaram, Moodbidri

    Tue, Mar 08 2016

    Sushmaji.... any humanitarian service for King of bad times?

    Please do extend the service then we can call it Humanitarian NGO :)

    DisAgree [5] Agree [10] Reply Report Abuse

  • mohan, mangalore

    Tue, Mar 08 2016

    G.Ramji, Don't worry. This is different story.

    DisAgree Agree [2] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Tue, Mar 08 2016

    The tears and pain of staff of King Fisher Airlines has been heard by the One who sits above all. The Loan advanced by all these banks belongs to Millions of depositors and account holders.
    He would not have become poor if at all he tried to settle the issue because he is not bankrupt.
    The chain was let lose but still at the mercy of ‘God’
    Mr. Mallya has been enjoying such a flamboyant life style when Millions hardly live comfortably through their lives.
    Let us wait watch how he will come to terms and save his face.
    There is nothing wrong with men possessing Riches.
    The wrong comes when Riches possess men.



    DisAgree [3] Agree [12] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Tue, Mar 08 2016

    Prophet Habakkuk was a minor prophet who wrote the books of Habakkuk around 605 BC, warned the Hebrews about the pay day for wickedness.

    In Chapter 2, Woe is d for many wicked ways of getting rich.

    "Woe unto him who piles up stolen goods and make himself wealthy by extortion. (chapter 2, Vs 6).

    Woe unto him who builds his house by unjust gains... Vs 9.

    Woe to him who builds a city with bloodshed and establishes a town by injustice. Vs 12.

    Woe unto him who gives drink to his neighbors... Vs 15. Liquor business.

    Woe unto him who says to wood " come to life! Or lifeless stone,
    "Wake Up".

    While going through history, most of the liquor kings and small people have been forced to drink a lot of tears. Half a century back, in Kerala there was a quite known too rich person having total control of the liquor business from Kottayam District, and how he died early in life was another story. I knew two families who were engaged in Arrack and Toddy business to one family I knew closely, I have told them to stop this business and do something, but they went ahead and now both of the families are not known to anybody.

    The Kennedy family became one of the richest through their liquor business, which was started by John F. Kennedy's grandfather Joseph Kennedy Sr. Later on President John F. Kennedy's father Joseph Kennedy Jr. who was appointed as the U.S. Ambassador to England by President Franklin
    D. Roosevelt got the exclusive right to import Scotch Whisky from England through which they became too rich. They are good hearted people and had concern for the poor and black people decades back
    but the liquor wealth caused them too much tears to drink from generation to generation.

    DisAgree Agree [1] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Mar 08 2016

    Sushma has a huge mission ahead of how safely move Mallya and his assets out of India.

    DisAgree [3] Agree [14] Reply Report Abuse

  • VM, Moodbidri

    Tue, Mar 08 2016

    Mr. Bahrain,
    Assets have been already moved out. Don't worry. CONGI leaders will not get their share this time. Bad Luck, Isn't it.
    Now nothing left for PAPPU's party to BRAWL on. Your party NETAS are very slow, brother.

    DisAgree [3] Agree Reply Report Abuse

  • PEDDU, MANGALURU

    Tue, Mar 08 2016

    IF SOMEONE LET HIM FREE TO GO THEN WHOLE BANKING SYSTEM WILL BE BECOME A JOKE

    DisAgree [1] Agree [18] Reply Report Abuse

  • Vincent Rodrigues, Promenade Road,Frazer Town,B'lore

    Tue, Mar 08 2016

    Vijaya Mallya is a person with rich sources and bank may not find difficult to recover their dues if they handle the issue properly.

    DisAgree Agree [21] Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Tue, Mar 08 2016

    Sell Tippu's Sword and remove Subramanya temple's golden door gifted by Mallya to settle King Fisher Air Line staff's salary and from the remained money recover the loan of the banks.

    DisAgree [3] Agree [13] Reply Report Abuse

  • NR, mangaluru

    Tue, Mar 08 2016

    Money is a like SEA , u can swim or sail, but you can't drink.
    Mallya saab,he try to drink all 7 SEA.
    It's not possible any one.
    Money is very GOOD , also very BAD.
    Now Mallya understand.

    DisAgree Agree [8] Reply Report Abuse

  • Riyaz, Mangalore

    Tue, Mar 08 2016

    Court should scrap Royal Challengers bangalore without any delay...

    DisAgree [2] Agree [14] Reply Report Abuse

  • PEDDU, MANGALURU

    Tue, Mar 08 2016

    TIPU SULTAN SWORD WAS A CURSE TO HIM WHICH CARRYING STAIN OF INNOCENT BLOOD

    DisAgree [2] Agree [9] Reply Report Abuse

  • Sachidanand Shetty, Mundkur/Dubai

    Tue, Mar 08 2016

    Mallya was to settle down in London after the deal!!!! What kind of deal it is???? What about the loan amount borrowed by his Ownership Company???? Mallya would simply say to all Banks in India that “Catch me if you can”!!!!!!!!

    DisAgree Agree [16] Reply Report Abuse

  • SK, Mangalore

    Tue, Mar 08 2016

    That is how our law works...... Unlike UAE laws

    DisAgree Agree [1] Reply Report Abuse

  • Af,, Mangaluru

    Tue, Mar 08 2016

    Mallya's GOODTIMES are over.
    how long he can enjoy with others money. i think now leftover business is only Kingfisher calendar.

    DisAgree [1] Agree [7] Reply Report Abuse

  • s, Dubai

    Tue, Mar 08 2016

    If you check out the air ticket 80% of the amount goes to gov

    DisAgree [2] Agree [11] Reply Report Abuse

  • Valerian D'souza, Udupi / Mumbai

    Tue, Mar 08 2016

    But if people agitate and speak against unfair taxes, Govt may apply SEDITION charges and put behind bars.

    DisAgree [6] Agree [11] Reply Report Abuse

  • geoffrey, hat hill

    Tue, Mar 08 2016

    Higher you climb,harder you fall.

    DisAgree Agree [15] Reply Report Abuse

  • Salvadore Pereira , Mangalore / Dubai

    Tue, Mar 08 2016

    What about other big fishes? Ambani etc., take similar type of actions on all of these. I am sure reserves will increase and the economy in India will improve.

    DisAgree [1] Agree [16] Reply Report Abuse

  • Arun, uae

    Tue, Mar 08 2016

    In Crease the Beer Price by 5. Then all loan will recovered within 1 month

    DisAgree [3] Agree [10] Reply Report Abuse

  • Dr S Kamath , Mumbai

    Tue, Mar 08 2016

    I just wonder why action not taken by various banks in other cases why only Vijay Mallya? Total Banks NPA and Loan outstanding is more than Rs 2 Lakh Crores and Mallyas Outstanding is Rs 7500 Crores .Why Single out only Mallya ?

    DisAgree [6] Agree [13] Reply Report Abuse

  • bhuvan, kavoor

    Tue, Mar 08 2016

    now SBI will think 10 times before giving loan to anybody.

    DisAgree [5] Agree [5] Reply Report Abuse

  • Aravind, Blr

    Tue, Mar 08 2016

    Defaulters of bank loans make the cost higher for clients who repay promptly. So it is necessary to make an example to discourage such wilful defaulters. Not only this guy, if there are bigger fish, they should also be in the net.

    DisAgree Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Mar 08 2016

    Riches to Rags ...

    DisAgree [1] Agree [8] Reply Report Abuse

  • ISMAIL K PERINJE, PERINJE

    Tue, Mar 08 2016

    Yet his passport is with him!
    yet his custody is not sought!!
    yet property was attached!!!
    Wilful defaulter Banks only giving paper statement!!!!
    Money laundered (true)ED not serious!!!!
    Think of moment...if that would be from common man,how law of land follows him?
    Any statement from politician?
    Mallya siphoned wealth of Indian Citizen but PM/FM has nothing to say or worry.

    DisAgree Agree [10] Reply Report Abuse

  • Valerian D'souza, Udupi / Mumbai

    Mon, Mar 07 2016

    These master defaulters of bank loans life style never goes down, they thoroughly enjoy their life though their companies are in utter losses and employees doesn't get wages.

    DisAgree [1] Agree [23] Reply Report Abuse

  • Valerian D'souza, Udupi / Mumbai

    Tue, Mar 08 2016

    Govt owned 29 Banks wrote off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015, much more than they had done in the preceding nine years, MUCH more than accepted levels!
    Citizens of this country would like to know all major defaulters for they are made to pay TAXES from nose!

    DisAgree Agree [15] Reply Report Abuse

  • Evans Christopher Sumitra, UDUPI/NEW YORK,USA.

    Mon, Mar 07 2016

    Is this case going to be tolerant or non-tolerant? ED has taken too much time to register this major money laundering issue. Money talks.

    DisAgree [2] Agree [17] Reply Report Abuse

  • Salvadore Pereira , Mangalore / Dubai

    Mon, Mar 07 2016

    then "King of good times" now Now "Bad times for King"

    DisAgree Agree [17] Reply Report Abuse

  • MW, DUBAI

    Mon, Mar 07 2016

    5 DIN MAUJ KE AUR 95 DIN JAIL KE...

    DisAgree Agree [15] Reply Report Abuse

  • India First, India

    Mon, Mar 07 2016

    OMG !! Still we not crossed case registering stage ??

    DisAgree [1] Agree [24] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Mon, Mar 07 2016

    King of good times is facing chain of bad times.
    Better to offer another Golden door for some favors.

    DisAgree [2] Agree [22] Reply Report Abuse

  • MASTHAN, DUB

    Mon, Mar 07 2016

    DEEPIKA PADUKONE ALSO BETRAYED HIS SON, WHEN SHE FOUND OUT THAT THEY WILL BE BIKHARI VERY SOON.

    DisAgree [6] Agree [22] Reply Report Abuse

  • Nazeer husain, Jeddah Saudi arabia

    Mon, Mar 07 2016

    Big frauds looters only just questioned ,never be arrested while small thieves or loan borrowers will be arrested without any questioning.

    DisAgree Agree [28] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Mon, Mar 07 2016

    Fraudulent and mastermind.
    He deserves to be punished.
    Uparwala sukuch dekh raha hai.
    Dher tho sahi, lekin karmon ka fal milna chaiye.
    By offering Golden door to temple he cannot escape the wreath of God.

    DisAgree [1] Agree [19] Reply Report Abuse

  • ROHAN, mumbai

    Mon, Mar 07 2016

    Freedom of Speech and Expression ...He'll also say India is Intolerant but he will not accept that is guilty and looter .....lol

    DisAgree [8] Agree [6] Reply Report Abuse

  • MASTHAN , DUB

    Mon, Mar 07 2016

    IF AMBANI GETS JAIL.

    HE WILL BUY JAIL COURT POLICE STATION AND ITS LOCK AND KEY.

    DisAgree [2] Agree [18] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Mon, Mar 07 2016

    Shameless fellow, ಎಣ್ಣೆದ ಲಾಭ?

    DisAgree [1] Agree [22] Reply Report Abuse

  • MASTHAN , DUB

    Mon, Mar 07 2016

    THOSE WHO DRINK HIS BEER. SHOULD HELP HIM.

    DisAgree [6] Agree [26] Reply Report Abuse

  • ANONYMOUS,

    Mon, Mar 07 2016

    if it's free may be we would consider...

    DisAgree [1] Agree [20] Reply Report Abuse

  • MASTHAN, DUB

    Mon, Mar 07 2016

    ONLY ANONYMOUS BEER WILL BE FREE.

    DisAgree [1] Agree [18] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Mar 07 2016

    TIHAR ...

    DisAgree [4] Agree [28] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Mon, Mar 07 2016

    Mr.Be-Sahara is looking for a partner in Tihar..

    DisAgree [1] Agree [25] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Mar 07 2016

    Henry,
    Do Bichaare Bina Sahaare,
    Paise Loot Loot Kar Haare ...

    DisAgree [2] Agree [24] Reply Report Abuse


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Title: Plea in SC for restraining Vijay Mallya from leaving India



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