Debts case: Vijay Mallya has left India, Centre informs SC

New Delhi: Liquor baron Vijay Mallya, who is facing legal proceedings for allegedly defaulting loans of over Rs 9,000 crores from various banks, has left the country a week back, government today informed the Supreme Court.

“I spoke to the CBI little while ago and it told me that on March 2 he (Mallya) left the country,” Attorney General(AG) Mukul Rohatgi told the bench comprising Justices Kurian Joseph and R F Nariman.

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The bench issued notice to Mallya and sought his response within two weeks on pleas filed by a consortium of banks seeking direction for freezing his passport and his presence before the apex court.

Since the court was informed that Mallya has already left the country, probably to UK, the bench allowed the plea of AG that the notice to him can be served through his official Rajya Sabha Email ID, Indian High Commission at London and also through counsel representing him before various high courts, Debt Recovery Tribunal and also through his Company.

During the brief hearing, the AG said that amount of more than Rs 9,000 crore was due to various banks and on one or the other pretext Mallya avoided to settle them.

There have been various proceedings going on against him in debt recovery tribunals in Bangalore and Goa, he said.

When the bench wanted to know what was the petitioner seeking, the AG said there was a need for a garnishee order and there was also a need for disclosure on behalf of Mallya.

Rohatgi said the banks were seeking an order that Mallya should appear in person before this court and also sought a direction for freezing his passport.

The AG said that Mallya has assets, both movable and immovable, abroad which are far excessive to loans secured by him here.

At this, the bench wanted to know how the banks have granted him loan under such circumstances.

The AG said the loans were granted keeping in mind that Kingfisher Airlines had a fleet of aircraft as well as brand value and loans were given also on the basis of the logo and the aircraft were attached to the third party.

The AG said, “Today I submit he (Mallya) should appear before you (SC). We want disclosure. We want to recover money, which is public money.”

After this submission the bench concluded the hearing and dictated the order by issuing notice to Mallya saying, “if he is already out of the country, we will permit you to serve the notice through Indian High Commission at London and also through his official email ID of Rajya Sabha, of which he is a member.”

The consortium of banks, in their appeal, have assailed the March 4 order of the Karnataka High Court refusing an “ex- parte ad interim” order against Mallya, England-based Diageo Plc and United Spirits Limited.

The banks said that the High Court should have passed an interim order, securing their financial interests, without hearing the industrialist and others including debtor firm Kingfisher Airlines Limited.

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”.

They had also sought a direction to Mallya that he should disclose his assets on oath. The banks had moved the DRT in the backdrop of Mallya’s recent resignation from the chairmanship of United Spirits.

Diageo Plc, the current owner of the liquor company, has agreed to pay USD 75 million (approx. Rs 515 crore) to Mallya as severance package.

Besides SBI, other banks which have moved the SC are: Axis Bank Limited, Bank of Baroda, Corporation Bank, Federal Bank Limited, IDBI Bank Limited, Indian Overseas Bank, Jammu and Kashmir Bank Limited, Punjab and Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank and United Bank of India.

The banks have also sought a direction to Mallya to “furnish suitable security for his appearance before the DRT” during the pendency of banks’ original applications for recovering debts.

The banks have also arraigned firms like Kingfisher Airlines Ltd, United Breweries (Holdings) Ltd, Kingfisher Finvest (India) Ltd, SBICAP Trustee Company Ltd as parties.

The plea said the banks “individually” had advanced loans to Kingfisher Airlines Limited and by way of a Master Debts Recast Agreement (MDRA), executed on December 21, 2010, and related documents (“Financing Documents”), the existing loans were restructured and was treated as a single facility.

10 Comments

  1. Vijay Mallya should start some Management Courses as how to loot banks and have a good and quality time. Similarly, Lalit Modi too could run courses on these lines.

  2. The NDA govt. has PLENTY to explain about this.

    When that chipmunk called Lalitha Modi fled India (under the UPA’s rule), a very very EMINENT lawyer called Aroona JetLee (beloved bro of Bruce Lee) screamed himself hoarse over it in Parliament! So much so, that he was finally heard and rewarded with a ministerial berth when the Big Jokers Party came to power.

    About this, Mallya, well – they ALL knew what he was up to! They KNEW his A** was pure Pallya!

    So, WHY weren’t adequate measures put in place to prevent him from fleeing our beloved Akhanda Bharatha and taking refuge in a WESTERN land where ONLY very smart people (like our polymath – Rampa) are allowed to waltz in?

  3. So, the Government knew fully about the exit of the liquor King and now telling to the Supreme Court the good news.
    Another Lalit Modi drama of the aachi din Government.

  4. Dear readers,

    During the election campaign Narendra Modi had made a strong and vociferous pitch saying that once he becomes the Prime Minister, Dawood would be brought back to India.

    While replying to a written question of BJP MP Nityanand Rai Minister of State for Home Haribhai Parathibhai Chaudhary “The subject has not been located so far. Extradition process with regard to Dawood Ibrahim would be initiated once the subject is located,”

    In another controversy external affairs minister Sushma Swaraj admitted to helping controversial IPL founder and enforcement directorate offender Lalit Modi with his travel documents, but made it clear that she did so only on ‘humanitarian grounds’.

    How does Liquor baron Vijay Mallya, who is facing legal proceedings for allegedly defaulting loans of over Rs 9,000 crores from various banks clear the Indian airspace in his private jet without clearance from the Indian authority?

    Is our borders are so porous that even our intelligence failed to inform the Home ministry?How does the our intelligence went on full alert throughout the country on Pakistani leads of ten terror infiltrators but failed to notice tycoon wanted multiple fraud taken off?

    Do our government explain to the nation which acted similarly neutralizing four terror in Gujarat in the past,is open the skies for Kingfisher to nest in UK?

    Is PM Modi’s government will use ‘red corner’ notice for the fraudster?

    Jai Hind

  5. Did you all hear his Lex Luthor-like “muahhahahaaaaaa” as the plane took off and left the Indian shores?

    Now, in the next couple of years, all these banks will have to write off this bad debt and as a result will be severely under-capitalised. In order to avoid a downgrade by rating agencies, the government will be forced to intervene and pump in another Rs.10000 crores to recapitalised these ailing banks. That money will be borrowed by the government and extracted from the Indian tax payers in the future. And many of these bakra tax payers will continue watching RCB at IPL and cheering for Mallya at the next season. Could an Indian be any more ignorant?

    Isn’t modern finance a wonderful thing? You get what you deserve in the end. Mallya is the cleverest of all Indians. He knew how to play the game. He used a brand Kingfisher which was totally different from his UB group for business purposes. He kept UB assets totally out of this scam. All the big banks fell for his brand image and sanctioned loans based purely on the hype and Mallya’s popularity while all along there was no tangible collateral against the loan. Trust me, other than the petty collateral he had pledged, there is not a thing these banks or the Indian government can do to claw even a single penny back . If there was a legal avenue, SBI would have used it in the last 4 years. Kiss that money good bye.

    SBI publishes the name and photo of the petty defaulters on the dailies. But I am surprised not even single SBI manager who was involved in sanctioning this Kingfisher loan has been publicly named. When is SBI going to take criminal actions against those scums? Remember what I said a couple of months ago about the ethics of bank managers? Mallya has been so clever that there is not a single law where he can be criminally prosecuted. Criminal charges come into play only when there is intent to deceive or money laundering is involved.

  6. Dear readers,

    1.27 state-owned banks have written off Rs 2.77 lakh crore ($1 billion) of bad loans in the last ten years.
    2. Out of this, Rs 1.14 lakh crore ($16.8 billion) or 40 per cent of the total bad loans were written off during the last three years from FY 2012-’15. As mentioned by RBI governor Raghuram Rajan in one of his speeches, “This money would have allowed 1.5 million of the poorest children to get a full degree from the top private universities in the country, all expenses paid.”
    3. A further Rs 52,227 crore are expected to be written off in FY16 (India Ratings report).
    4. This would take up the total bad loans to Rs 3.29 lakh crore ($48 billion).

    The issue has been politicised with the BJP claiming that it is carrying on a cleansing process to clear the backlog of troubled loans disbursed during UPA 1 and 2 regimes. The Supreme Court has also intervened in the matter asking the RBI to furnish record/names of all defaulting companies who owe more than Rs 500 crore to banks or who have got their debt restructured under various CDR programmes.

    The amount of loss, that is Rs 3.29 lakh crore is much more than the Rs 1.86 lakh crore in case of the coal scam and Rs 2 lakh crore in the 2G scam. Further, this is actual loss and not opportunity loss as in the case of coal and 2G scams.

    Why was this information not put in the public sphere by the Union government?

    Despite Modi sarkar’s tall claims, it’s burre din for Indian economy.
    What is the state of big business, which is often expected to indicate economic trends. In a word, very bad. Here’s a look:

    1) Reliance (Anil Ambani) in March 2015 was in debt of Rs 1.25 lakh crore.

    2) Vedanta Group was in debt of Rs 1.03 lakh crore.

    3) Essar owed Rs 1.01 lakh crore.

    4) Adani Group was in debt of Rs 96,031 crore.

    5) Jaypee Group was in debt by Rs 75,163 crore.

    6) JSW (Sajjan Jindal) is indebted by Rs 58,171 crore.

    7) GMR Group owes creditors Rs 49, 976 crore.

    8) Lanco Group owes Rs 47,102 crores.

    9) Videocon Group is in debt of Rs 45,405 crore.

    10) GVK Group is in debt by Rs 33,933 crore.

    What does this mean for the economy? Indian business is in serious trouble. It is yet another symptom of a stuttering economy which has severe problems. The current economic model has not delivered, despite economic “reforms.”

    The Indian fishes are already swallowed by Kingfisher and safely nestled in UK.Will some more big business follow the migratory path for safe haven?

    Farmers are killing themselves for pity sum,Government even planned to tax pension plan.Now major defaulters are finding safe haven with black money.

    Why there are no agitations now by Anna Hazare and Baba Ramdev in Ramlila maidan?

    Jai Hind

    • Why there are no agitations now by Anna Hazare and Baba Ramdev in Ramlila maidan? – Mr. Shaikh

      Arre, baba.. why should the ELASTIC man complain now?

      Hasn’t the Maha govt allotted him some 500+ acres of land to peddle his ‘wares’ – cow urine based disinfectant included? Hey, he EVEN had a cure for the Ebola virus! And, doesn’t he have Z+ security? Isn’t he a pet of our globetrotter?

      So, WHY should he EVEN bother to do some ‘natak’ at some maidan?

  7. Every one knew Mr Mallya is a fraud for a long time. Govt and the bench issued notice to Mallya after he left the country. This proves how inefficient people we have and could not nab him when he was in India for years.

  8. India continues to prove why it is a third-world country!! No wonder all these governmental agencies are filled with incompetent folks!! They are only good at harassing some goodangadi owner!!

    • India continues to prove why it is a third-world country!! – Murudu Rampa

      Lol! We ALL know how & where the financial crisis of 2008-9 started! Da ‘Man widdha beeeegggggg stickkkkkaaa’ tripped! Gave out more loans without sufficient collateral..(shhhh.. printed more $$ than Pakistan did and does).. bust a few banks…. lol!

      And hahahaha… I won’t even go to how the ‘Beeeggggaaa stickkaaaa’ man couldn’t find THE MOST wanted man – for some 10 years! Man… how many thousands of Apple-picking wage $$ have you paid to Pak via taxes? My due sympathies!

      And to think – poor Alabama farmer folks (soldiers in the US elite forces) thought they could wrap up the Iraq war within a week if not under a month! Lol.

      EVEN now, I’m in ‘Shock & AWE’! 🙂

      MORE Jokes, ya Rampa. 🙂

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