The News Minute| September 2, 2014| 2.10 pm IST
State-run United Bank of India (UBI) on Monday declared the defunct Kingfisher Airlines, its promoter Vijaya Mallya and its three directors as wilful defaulters after they did not turn up for a meeting with its grievances redressal panel, an official said. "We have declared Kingfisher Airlines, its chairman (Mallya) and three directors on its board as wilful defaulters as per the RBI circular pertaining to loan advanced to the airline," a senior official of the bank's recovery cell said.
Mallya then approached the Supreme Court against the wilful defaulter status, but the SC refused to intervene and told Mallya and Kingfisher Airlies to approach the High Court for legal remedies. Kingfisher Airlines has issues a formal statement that says-
The Hon'ble Supreme Court observed that the SLP filed by KFA against UBI seeking legal representation before the Grievance Redressal Committee of the Bank had become infructuous as the Committee had already made a decision. The Hon'ble Court said that it was up to KFA to pursue such legal remedies as are available.
* KFA and its Directors will vigorously challenge the decision of UBI
* KFA and its Directors strongly deny the allegations of wilful default for alleged non-payment of Rs 7.5 Crores to UBI
* KFA and its Directors have not been given any opportunity to present their case through lawyers of their choice before UBI who have come to a wrongful ex-parte decision in great haste when the question of legal representation was under challenge.
However, on Monday night Mallya told Economic Times , that 'UBI had not given him "an opportunity to hear my request for legal representation in the grievances redressal committee. Let them prove in court that I am a willful defaulter". The report also states that Mallya's Kingfisher Airlines owes Rs 7,000 crore to 17 banks.
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