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SBI Seeks Vijay Mallya's Arrest, Seizure of Passport

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Lalit

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Just desserts, at last!
SBI Seeks Vijay Mallya's Arrest, Seizure of Passport: Report


Press Trust of India | Last Updated: March 03, 2016 10:27 (IST)

Mumbai: Top state-run lender State Bank of India (SBI) has sought arrest of Vijay Mallya, and also impounding of his passport, as the bank approached Debt Recovery Tribunal (DRT) seeking action against the UB Group promoter for defaulting on loans.

State Bank of India, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal in Bengaluru against the airline's chairman Mallya in its bid to recover over Rs. 7,000-crore dud loans from him.

According to sources, SBI has moved four applications at the DRT in Bangalore, seeking impounding Mallya's passport, getting him arrested, securing the lenders' first right on the payout from Diageo and getting full disclosure of his assets in the country and abroad.

The immediate objective of the lenders moving the DRT is to secure a first right on the $75 million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman last week.

An SBI official confirmed to Press Trust of India that they have moved the DRT seeking right on $75 million severance package, as the borrower Mallya who has already been declared by the bank a wilful defaulter, has decided to leave the country and settle down in London.

Mallya and Kingfisher Airlines owed Rs. 7,800 crore to a consortium of 17 lenders led by State Bank which 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. Last month, Punjab National Bank had also declared him, his group holding company United Breweries Holdings and the long-defunct Kingfisher Airlines as wilful defaulters.

As part of a deal, Diageo said it would pay $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.

Last year Diageo auditors had found that Mallya had diverted Rs. 7,200 crore of United Spirits Limited (USL) funds to the airline, which was again diverted elsewhere.

The England-based Diageo is the majority shareholder of USL with a 54.78 per cent holding, excluding the 2.38 per cent owned by the USL Benefit Trust.

Mallya personally held a small stake of 0.01 per cent in USL at the end of December 2015, while his group firms owned further 3.99 per cent stake. However, more than half of these shares are pledged with banks.

The 17-member lenders consortium led by SBI has also decided to auction Kingfisher House in Mumbai on March 17 this year in a bid to recover a part of Rs. 6,963 crore debt due from Kingfisher, as lenders since January 2012 has recovered around Rs. 1,200 crore by selling pledged shares of group companies and other physical assets.

Banks are charging 15.5 per cent compounded interest on this principal amount, which has not been serviced since January, 2012.
 
[h=1]HC refuses to hear Mallya's plea against wilful defaulter tag[/h] PTIPublished Mar 3, 2016, 9:20 pm IST
Updated Mar 3, 2016, 9:20 pm IST


Mallya has moved the Delhi High Court on the ground that it has jurisdiction to hear his plea.

New Delhi: The Delhi High Court on Thursday refused to hear Vijay Mallya's plea against State Bank of India's decision to name him a "wilful defaulter" and said he can approach an appropriate forum.
Sensing the mood of the court, Mallya's counsel requested Justice Rajiv Sahai Endlaw to allow them to withdraw their petition including one filed by United Breweries Holdings (UBHL), which is also owned by the businessman.
The court allowed Mallya's request, made through senior advocate Rajiv Nayar, while giving them the liberty to approach before an appropriate court for any remedial measures, if available under the law.
Mallya has moved the Delhi High Court on the ground that it has jurisdiction to hear his plea, as he is a resident of Delhi and also a Rajya Sabha member and has received all the correspondence here.
His plea has alleged that the October 31, 2015 decision of SBI's grievance redressal committee denying legal representation at a hearing held by the bank on October 29,2015 while declaring him and UBHL as wilful defaulters is purportedly illegal.
The petition challenged the decision of SBI identifying them as a wilful defaulters and intimating the Reserve Bank of India and the Credit Information Companies for inclusion of names of the petitioners in the list of wilful defaulters.
Mallya has contended in his plea that it is "violation of natural justice”. The court, however, refused to go into that and said it "cannot confer the jurisdiction".
It said it cannot have two different bench hearing the same matter. "The Bombay High Court has earlier heard it. This should also be before that court only. What's the problem?" the court asked.
SBI opposed Mallya's plea his residence is in Mumbai and the matter should be heard by Bombay High Court.
SBI has declared Mallya and UBHL a wilful defaulter in October 2015 for non-payment of dues owed by his now defunct Kingfisher Airlines.
 
At least some has dared to challenge him. Thought he would go Scot free and enjoy a peaceful life abroad!!
 
Airindia went downhill due to mainly bad purchase decision of planes . Nothing happened to chief executive of air india or the minister concerned.

Airline industry had been ailing.

Kingfisher went down due to purchase of air deccan and trying to expand fast.

Mallya is being punished for his flamboyant lifestyle, his booze business , foray into IPL ,love for racing cars.

India does not like people who believe in living well.

Many politicians lived of him.

Is there no one to save him?
 



Mallaya is also a willful defaulter having merry time with his firms loans getting written off by the respective banks.

The latest being 7000 crore default by King Fisher.

He can only regret now that this
carrier is not flying when the oil price has dipped so low.

It is king now …. tomorrow it will be a monarch.

It is very unfortunate that there are few who defend such wilful defaulters.

BTW who saved Sahara Chief??
 
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Mrs.Arunthathi , the chairman of State Bank Of India is a smart and straight forward person.

Her efforts are to be appreciated !!
 
If punitive action is taken calling some industrialist wilfull defaulters and investigate [using CBI] what made such loans possible harassing bank officials, a negative

message would go out to both bank employees and industrialists.

Banks would play safe and not lend and industrialists will not approach banks but find other avenues for money or not start any industry.

This will further hurt banks and make them worthless.

One does not punish a man for his lifestyle.
 
If Mallayya is taught a fitting lesson then others would automatically learn.

Many North Indian businessmen in Steel & Cement industries have cheated the exchequer! They are not even part of the list below??

NPA-table-Feb-19-2015.jpg
 
Vijay Mallya default case: DRT to pass its orders tomorrow



BENGALURU: The Debt Recovery Tribunal (DRT) will tomorrow pass orders on the state-owned SBI's application seeking the lenders' first right on the $75-million payout from Diageo to UB Group promoter Vijay Mallya under a recent sweetheart deal.

DRT had reserved its order after hearing the submissions made by both parties - bankers and Mallya - on March 4.

George Joseph, a counsel for bankers, said orders will be passed tomorrow.

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.


Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
 
In some NPA accounts, the status may be hopeful of upgrading the position by revival.
Any account that has been in default in paying ............ 90 days interest in case of cash credit loans and more than 3 monthly instalments in case of term loans are classified as NPAs.

Within NPAs there are sub classifications........ substandard assets, stressed assets, etc.
 
Trouble mounts: DRT bars Vijay Mallya from accessing Diageo's Rs 515 cr pay packet

Trouble seems to be piling up for Vijay Mallya, the business man who owes Rs 7000 crore to 17 banks.

According to media reports trickling in, the Bengaluru debt recovery tribunal has ordered that Mallya cannot access the $75 million severance fee he has been paid by UK drinks major Diageo for stepping down from United Spirits charimanship.

The DRT has ordered that he will Diageo should not disburse the amount to Mallya until the present case filed by Sate Bank of India is disposed of. The next hearing in the case is on 28 March.

Read more at: http://www.firstpost.com/business/t...ing-diageos-rs-515-cr-pay-packet-2660600.html

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ED registers money laundering case against Vijay Mallya


The case has been registered on the basis of a CBI probe into an alleged wilful default of Rs.900 crore loan in conspiracy with IDBI Bank officials.


The Enforcement Directorate has registered a money laundering case against businessman Vijay Mallya and chief financial officer of now-defunct Kingfisher Airlines on the basis of Central Bureau Investigation’s (CBI) probe into alleged wilful default of Rs.900 crore loan in conspiracy with IDBI Bank officials.

In October 2015, the CBI had booked the case of corruption and criminal conspiracy against Mr. Mallya, as director of Kingfisher Airlines, and conducted searches in Mumbai, Bengaluru and Goa. Two months later, the agency summoned him for questioning.

The CBI found that the IDBI Bank granted loan to Kingfisher Airlines despite an adverse internal audit report on its financial condition. The report had highlighted that the company was unable to repay loans earlier obtained from a consortium of 17 banks of which IDBI was a part. Mr. Mallya’s companies owed over Rs.7,000 crore to the consortium.


Read more at: http://www.thehindu.com/business/ed...-case-against-vijay-mallya/article8323664.ece
 
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Indian govt may try making an example of vijay mallya. It will think up of charges which can be slapped on him.

Whether it will succeed to get back public money is open to question.

Disease of NPAs and stressed assets is wide spread.

Unless there are judicial and economic reforms , the defaulters cannot be brought to book.

The defaulters in case they borrow from foreign entities, they return promptly as their laws are stringent.We have to do the same . Have stringent laws and strict

enforcement.That calls for political will.
 
It is a positive development that SBI has taken a tough stand - Mr Mallya is on the defence now. As observed by Mr Krish44, action against defaulters cannot be fully effective unless there is judicial reforms in India. Probably, the present administration wants to try a tough action against Mr Mallya & based on the success, similar action can be expected against other defaulters.

Judiciary should show no mercy to the defaulters and pass orders attaching all properties owned by all the directors, their spouse, sons and daughters. This will instill a sense of fear for such fraudsters.
 

As Kingfisher default issue rages, CBI chief makes all the right noises; will he walk the talk?

By Nalini R Mohanty

Excerpts:

CBI director, Anil Sinha, hogged the limelight last week for his no-holds-barred chastisement to the heads of the public sector banks for their laid-back approach in taking to task the large borrowers.

In the inaugural session of the 7th conference of the CBI and Indian Bank Association on 2 March at Mumbai, Sinha minced no words to put the top officials of the public sector banks in the dock for humongous loss of the taxpayer’s money.

The head of the top investigative agency of the country talking down to the chairmen and managing directors of the public sectors banks present there as the colluders in the financial bungling of gargantuan proportions must be unprecedented.

The CBI boss began his indictment with an overview of the dismal banking scenario in India: “During the last six years, gross NPAs in PSBs have gone up from Rs 44,957 crores into 2009 to Rs 3 lakhs crores in 2015 (sic)."

Anil Sinha hit the bull’s eye when he said: “the crisis in the banking and financial system runs deep and there is a growing sense of anguish among the public that while banks are strict on retail borrowers, the big borrowers and large-scale fraudsters are able to not only evade the law but enjoy the fruits of crime.’


Read more at: http://www.firstpost.com/business/a...ght-noises-will-he-walk-the-talk-2662404.html
 
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[h=1]Don’t allow Vijay Mallya to leave country: 17 banks petition SC[/h][h=2]Attorney General Mukul 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.[/h]
The SBI-led consortium of seventeen banks moved the Supreme Court on Tuesday to restrain Vijay Mallya from leaving the country to enable them to proceed against him over recovery of loans.

Attorney General Mukul Rohatgi mentioned the matter before a bench led by Chief Justice T S Thakur, which agreed to hear the matter on Wednesday.

Rohatgi said Mallya owed around Rs 9,000 crore and that he has been decanted a wilfull defaulter for not repaying the loans. He also cited pending proceedings against the founder-owner of Kingfisher Airlines before the Debt Recovery Tribunal.

Read more at: http://indianexpress.com/article/in...-restraining-vijay-mallya-from-leaving-india/
 
Don’t allow Vijay Mallya to leave country: 17 banks petition SC

Attorney General Mukul 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.


The SBI-led consortium of seventeen banks moved the Supreme Court on Tuesday to restrain Vijay Mallya from leaving the country to enable them to proceed against him over recovery of loans.

Attorney General Mukul Rohatgi mentioned the matter before a bench led by Chief Justice T S Thakur, which agreed to hear the matter on Wednesday.

Rohatgi said Mallya owed around Rs 9,000 crore and that he has been decanted a wilfull defaulter for not repaying the loans. He also cited pending proceedings against the founder-owner of Kingfisher Airlines before the Debt Recovery Tribunal.

Read more at: http://indianexpress.com/article/in...-restraining-vijay-mallya-from-leaving-india/

lock the stable door after the horse has bolted!
 


Now the parrot seems to have left the cage already.

How are these Banks viz SBI, Bank of Baroda, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Axis Bank, Bank of Baroda, Corporation Bank, Federal Bank and IDBI Bank are going to recover the debts claimed to be over 9000 crore?

It is now going to be a long battle …….

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Debts case: Supreme Court to hear banks' plea to restrain Vijay Mallya from leaving India

They had also sought a direction to Mallya that he should disclose his assets on oath.

Excerpt:

Prior to moving the High Court, the banks had filed four pleas in the Debt Recovery Tribunal (DRT) at Bengaluru seeking reliefs like freezing of Mallya's passport, arrest warrant against him and issuance of a "garnishee order against Respondent Nos. 10 (Diageo Plc) and 11 (United Spirits Limited) from disbursing USD 75 million".

The DRT, on March 02, heard arguments only on one plea and did not consider other three pleas which were related to freezing of the passport and restraining Mallya from leaving country, the banks said in their appeal to the apex court.

The banks had moved the DRT in the backdrop of Mallya's recent resignation from the chairmanship of United Spirits.

See more at: http://www.thenewsminute.com/articl...llya-leaving-india-40025#sthash.tRMnhwl6.dpuf
 
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Debts case: Supreme Court to hear banks' plea to restrain Vijay Mallya from leaving India

They had also sought a direction to Mallya that he should disclose his assets on oath.

Ref: #20

கண் கெட்ட பின் சூர்ய நமஸ்காரம்! Your prayers may not be answered since சூரியன் is eclipsed today!

 

பல நாள் திருடன் ஒரு நாள் மாட்டுவான்.


P.S: A person wanted in 17 cases was arrested and extradited to India after 27 years on the run and is currently awaiting trial in CBI custody.
 
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There needs to be some uniformity in dealing with defaulters.

Banks can exhibit the same bravado in nabbing other top corporates who have contributed to large NPAs.
 
Iron hands of law will not spare anyone.

Yes ji.
This is the beginning,
I presume, Mallayyas dues to the banks has been Rs. 7900 crores. I understand this amount quoted, is on the date of the accounts became NPA. Interest would not be applied further in the accounts.
Now for the court case, notional interest on outstandings would be calculated for recovery purpose. The total NPA plus notional interest could come anywhere around 9000 to 10000 crores.

He is one of the greatest defaulters as on date.

RBI governor deserves congratulations for taking up the case with Finance Ministry.

Again Modi & co, for according approval without any interference.
 
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