Kingfisher and Mallya declared “wilful defaulters”

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By TESTCustomwebLP TESTCustomwebLP September 1, 2014 16:21

Kingfisher and Mallya declared “wilful defaulters”

The United Bank of India has ruled the grounded Kingfisher Airlines and chairman Vijay Mallya as “wilful defaulters”.

Deepak Narang, executive director of UBI, said: “We have declared Kingfisher Airlines, Vijay Mallya and a few other directors of the airline company as wilful defaulters.”
 
The ruling comes after the Calcutta High Court dismissed Kingfisher’s plea against the bank after it identified the airline as a wilful defaulter and asked Mallya to appear before its grievance redressal panel.
 
UBI is one of the many creditors to Kingfisher Airlines and has an exposure of about Rs 400 crore to the embattled airline.

According to Reserve Bank of India (RBI) norms, a “wilful default” is said to have occurred when an entity defaults in its payment obligations to lenders even if it has the capacity to pay and doesn’t use the funds for which the loan was availed, or diverts such funds.

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By TESTCustomwebLP TESTCustomwebLP September 1, 2014 16:21