Sunday, March 06, 2016

I am not an absconder, says Mallya

Mumbai: Vijay Mallya, chairman of United Breweries (UB) group, has issued a statement to say banks already have securities worth Rs 2,500 crore against Rs 7,000 crore loans given to the now-defunct Kingfisher Airlines.
Since the closure of the Kingfisher Airline in April 2013, the banks and their assignees have recovered Rs 1,244 crore in cash from the sale of pledged shares, Mallya stated.  In addition, Rs 600 crore was deposited in the Karnataka High Court in July 2013 and another Rs 650 crore belonging to United Breweries Holdings - the proceeds received by from the sale of shares in United Spirits to Diageo in July 2013 - was deposited in the court in 2014.
Thus, the aggregate cash recovery/security available is Rs  2,494 crore, Mallya said.  “Legal proceedings apart, I have been making efforts to reach a one-time settlement with the banks, and to that end I have had three meetings and follow-up calls in the recent past and my efforts will continue – this settlement would be based on additional payments to the banks... Personally, I’m not a borrower or a judgment defaulter,” said Mallya, even as State Bank of India moved Bengaluru Debts Recovery Tribunal to get Mallya's passport impounded and arrested.
Mallya said despite pledging blue-chip securities and depositing significant amounts in court, “a successful disinformation campaign has ensured my becoming the poster boy of bank NPAs (non-performing assets).  In fact, banks have NPAs of Rs 11 lakh crore and have borrowers who owe much more than the amount allegedly owed by Kingfisher Airlines – a fact never alluded to or widely reported by the media as in my case”.
06/03/16 Business Standard
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