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Call it a Drama or Karishma? Vijay Mallya Vanishes into Thin Air!

Call it a Drama or Karishma? Vijay Mallya Vanishes into Thin Air! – According to the banks, the total outstanding is now nearly Rs. 10,000 crore.

Flashback (Drama, Just a few days back)!

@ In a setback to businessman Vijay Mallya, the Bengaluru Bench of the Debt Recovery Tribunal on Monday temporarily restrained U.K.-based Diageo Plc from paying $75 million to him as per the reported agreement signed with him.

@ C.R. Benakanahalli, the presiding officer of the Bench, in his brief order also directed Mr. Mallya not to receive, temporarily, the money as per the agreement while stating that the sum would stand attached till further orders on the proceedings initiated by the banks to recover money borrowed by the Mallya-owned Kingfisher Airlines Limited.

@ According to the banks, the total outstanding is now nearly Rs. 10,000 crore.

@ Though banks’ counsel sought early hearing of their other three pleas, including one for arrest of Mr. Mallya, the DRT adjourned proceedings to March 28.

@ The banks on Friday had also moved the High Court with the same pleas citing delay in hearing their four applications by the DRT.

@ A preliminary enquiry into the allegations was initiated about four years ago. The agency found that bank officials “colluded” with Kingfisher Airlines’ promoters or directors and the chief financial officer to sanction the loan despite an adverse internal audit report highlighting the risks involved.

@ In fact, the firm had defaulted on repayment of loans from a consortium of 17 banks, of which IDBI was a part.

@ The Enforcement Directorate has registered a money-laundering case against Vijay Mallya and the CFO of Kingfisher Airlines A. Raghunathan in connection with the CBI’s probe into the alleged default of a Rs. 900-crore loan in collusion with IDBI officials. The ED is pursuing the case under the Prevention of Money Laundering Act to trace the transactions pertaining to a suspected diversion of funds.

@ The ED will soon summon Mr. Mallya and the other accused to record their statements.

@ A SBI-led consortium of 17 banks moved Supreme Court Tuesday to restrain Vijay Mallya from flying abroad because they feared that the founder-owner of Kingfisher Airlines may settle in London to stall loan recovery proceedings against him in India.

@ The banks contended that the Debts Recovery Tribunal (DRT) should have issued an arrest warrant against Mallya in order to compel him to truthfully disclose all his assets. On Monday, a DRT judge in Bengaluru had restrained multinational alcoholic beverages company, Diageo Plc, from paying Mallya Rs 515 crore as part of a settlement to exit United Spirits Limited.

The Real Story!

# A consortium of 17 banks led by State Bank of India approached the Supreme Court on Tuesday to prevent controversial tycoon Vijay Mallya from leaving the country.

# But they may have left it for too late. Mallya is believed to have left for a foreign destination a few days ago.

# 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, indicating the government was backing the petitioners against Mallya, who recently said he wished to settle in London.

# Mallya’s spokesperson said she had no information about his whereabouts and that he was communicating only through email. A consortium of 13 banks on Tuesday approached the SC, a day after a Debt Recovery Tribunal (DRT) restrained Mallya from disbursing in any manner Rs 515 crore paid to him by liquor major Diageo for exiting United Spirits. But the tribunal refused an interim order to freeze Mallya’s passport.

# The banks say today, “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 and treated as a single facility. United Breweries and Mallya have on December 21, 2010 executed both corporate guarantee and personal guarantee promising repayment of the entire amount due to the banks.”

Source: Times of India

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