Banks seek Vijay Mallya arrest ?
13 Banks including premier bank in India the SBI have approached the Karnataka High Court seeking the arrest of liquor King Vijay Mallya who also own Kingfisher Airlines. Vijay Mallaya is also the Chairman of the UB Group. The Banks wanted the court to issue impounding of his passport along with 2 other pleas after they moved to Debt Recovery Tribunal whichreserved its order on one of the 4 applications filed by the State Bank of India, asking for the lender’s first right on the payout from Diageo to Mallaya. Banks seek Vijay Mallaya arrest.
Rupees 7,000 crore is the due loan by Vijay Mallaya and his group of companies with name UB Group with the SBI. DRT judge Benakanahalli has took up the application for securing the first right on the USD 75 million severance package that Mallaya will be getting for quitting as Chairman of Diageo owned United Spirits as under a sweetheart deal. While the other 3 application for impounding Mallaya’s passport, getting him arrested and getting full disclosure of his assets are yet to be heart, Judge said that he will take the other applications later.
Uday Holla, Mallaya’s counsel has said that his client is a small time defaulter but the bigger defaulters like Reliance who has defaulter upto Rs. 40,000 crore did not get any such problems from the banks. He extended to say that the banks were hounding small defaulters and leaving away the big defaulters like the company he mentioned.
“Recently the RBI had said that these banks do not take action against large fries, but small fries. My client Mallya is a small defaulter compared to Ambani’s Reliance. Some of the companies have defaulted to the tune of Rs 40,000 crore, and nothing happens to them,” he claimed.