Wilful defaulter tag: Angry Mallya says United Bank is making him a bakra'

September 2, 2014

Wilful defaulter
New Delhi, Sep 2: 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," said a senior official of the bank's recovery cell.

The three directors are AK Ganguly, Subhash R. Gupte and Ravi Nedungadi.

The bank had advanced about Rs 400 crore to the airline in 2006-07 from its Bangalore branch towards working capital and operational expenses.

"The airline is also liable to pay compounding interest on the principal amount of Rs 400 crore we have advanced to it," the official said on condition of anonymity as he was not authorised to brief media.

As per the Reserve Bank of India (RBI) circular, a defaulting company or person will not be allowed to borrow money from any bank and will cease to hold any official post in the company.

Ganguly and Nedungadi are also directors on the board of United Breweries (UB) Ltd. in Bangalore.

The bank's recovery cell summoned Mallya and the directors after a division bench of the Calcutta High Court Aug 28 dismissed the airline's petition to send a legal representation and exempt them from appearing before the redressal panel.

The bank also filed a caveat in the Supreme Court Aug 29 against the airline after the high court ruling last week.

In a belated response, the beleaguered airline said the bank had post-haste proceeded to declare it and its directors as willful defaulters "in respect of an overdraft facility of Rs.7.5 crore" even before a copy of the high court order was made available to the parties and before its special leave petition was listed in the apex court.

"We intend to pursue all available legal remedies, including the SLP filed in the Supreme Court Aug 29 against the high court order," the airline said in a statement from Mumbai late Monday.

According to a report in Economic Times, Mallya hit back at the lender saying the bank had declared him a willful defaulter "without a hearing".

Mallya told ET that UBI had not given him an opportunity to hear his request for legal representation. "Let them prove in court that I am a willful defaulter," he added.

Another report in Times of India quotes Mallya as saying, "They are making me a bakra (fall guy) because they want to set an example for other defaulters."

Observing that being declared a willful defaulter would have serious consequences, including penal, the airline said the bank had deprived it an opportunity to be represented by a trained legal practitioner, resulting in violation of the principles of natural justice.

"The Calcutta High Court failed to consider the most relevant fact that the Delhi High Court ruled Aug 28 in a case we filed against Punjab National Bank (PNB) involving similar facts and circumstances and held that the courts have always leaned towards allowing representation through legal practitioners to obviate any handicap that the person may feel in representing his case," the airline said.

Noting that its prayer to be represented by an advocate in the petition against PNB was allowed by the Delhi High Court through an order, a copy of which was made available to it only Monday, the airline quoted further from the order in support of its stand.

"In cases where adverse decision would have serious civil and pecuniary consequences, denial of representation through a legal practitioner may in given facts be violative of natural justice. Indisputably, the consequences of holding the petitioner as a wilful defaulter would be serious for the petitioner and the petitioner ought to be afforded adequate opportunity to present its perspective on the issue," the order had said.

The Director General of Civil Aviation (DGCA) had suspended the airline's permit in October 2012 on safety concerns and indefinite strike by its employees.

The grounded airline reported a net loss of Rs.4,301 crore for 2012-13.

With an accumulated losses of Rs.16,023 crore and a negative net worth of Rs.12,919 crore, the airline has an exposure of Rs.8,000 crore in the form of debts from a consortium of 14 banks, aircraft leasing firms, airport operators, state-run oil marketing firms and other vendors.

Also Read: Vijay Mallya declared 'wilful defaulter' by United Bank of India

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News Network
May 7,2024

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The International Criminal Police Organization (Interpol) on Monday responded to Karnataka’s Special Investigation Team (SIT) regarding a blue corner notice issued against JDS MP Prajwal Revanna.

In its response, Interpol said that all 196 member countries were alerted to identify and report if Prajwal Revanna is spotted at any port in their jurisdiction.

The Karnataka government issued a Blue Corner Notice on Sunday against Prajwal Revanna, who is facing allegations of sexual abuse by his staff members.

A Blue Corner Notice is issued by the international police cooperation body to collect additional information from its member countries about a person’s identity, location or activities about a crime.

The notice was issued after the 33-year-old Hassan MP reportedly flew to Germany soon after the Karnataka State Commission for Women chairperson Nagalakshmi Chowdhary wrote to the CM to order a probe into the sexual allegations against Prajwal.

Last week, the anticipatory bail application of Prajwal Revanna was also denied by Justice Santosh Gajanana Bhat’s bench of People’s Representative Court in Bengaluru.

Earlier, his MLA father and son of former Prime Minster HD Deve Gowda, HD Revanna was remanded to Karnataka SIT custody in a kidnapping-related sex scandal case.

His arrest came after the kidnapped victim was rescued from Revanna’s close assistant Rajasekhar’s farmhouse in Kalenahalli, Hunsur Taluk after the SIT conducted the rescue operation to find her, the police said.

The abduction case was filed by the son of a woman who worked at the Revannas’ house for nearly five years. He alleged that his mother was kidnapped from her home on April 29 by Satish Babanna a relative of Revanna.

The Karnataka Sex Scandal case pertains to explicit video clips allegedly involving the 33-year-old Prajwal, grandson of JD(S) patriarch and former Prime Minister H D Deve Gowda, which went viral on social media.

Those videos began to make rounds in Hassan in recent days, following which the state government constituted a Special Investigation Team (SIT) to probe the sexual abuse allegations against the MP.

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News Network
May 8,2024

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Mangaluru: Congress leader and five-time Belthangady MLA K Vasanth Bangera, passed away on Wednesday, at a private hospital in Bengaluru on Wednesday. He was 79.

His health condition had worsened recently, and he was shifted to Bengaluru for treatment. His body is likely to be brought to Belthangady on May 9 and will be kept for public homage, family sources said.

He has the credit of contesting from all three parties - BJP, Janata Dal and Congress. Since 1983, he had contested nine assembly elections and won five times.

Bangera had entered the Legislative Assembly by winning Belthangady constituency as a BJP candidate in 1983 against Gangadhar Gowda of the Congress.

He won had the elections again in 1985 and later joined the Janata Dal. However, he lost the election against Gangadhar Gowda of Congress in 1989.

He became an MLA once again for the third time in 1994. In the 1999 election, Bangera lost to his brother Prabhakar Bangera who contested from BJP.

In 2008, Bangera joined the Congress and won the elections for the fourth time. In 2013, he had once again won the elections against Ranjan Gowda of the BJP, but he also lost the elections to sitting MLA Harish Poonja of the BJP in 2018.

He was born to Kede Subba Poojary and Devaki. He is survived by his wife Sujitha V Bangera, and two daughters Preethitha and Binutha.
 

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May 4,2024

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Bengaluru: BJP leader Anantkumar Hegde represented Uttara Kannada Lok Sabha segment in Karnataka for six terms and now gynecologist Anjali Nimbalkar is putting up a spirited fight seeking to turn the tide and "deliver" it for the Congress.

Dr Nimbalkar is taking on former Karnataka Assembly Speaker Vishweshwar Hegde Kageri, who replaced Hegde, in this BJP stronghold.

A former Congress MLA, she lost the Assembly elections from Khanapur in Belagavi district last year.

The 62-year-old Kageri, a six-term MLA and a former minister, was also defeated in the Assembly polls from Sirsi.

"In the past 30 years, the voice of Uttara Kannada was not spoken and not even a single question was asked in the Parliament," Nimbalkar said in an apparent dig at Hegde.

If elected, she said her focus is to address the local issues related to forest dwellers, getting them 'patra' for their own land -- a battle they have been fighting for long.

Also on her priority list is getting a multispecialty hospital in Kumta as per people's demand, generating employment and focusing on tourism for the overall development of Uttara Kannada.

"Issues related to forest dwellers -- they want a 'patra' for their own land -- we will try and put forth these issues in the first session itself and we will see to it that maximum applications which are pending with the Central government get cleared during the first session itself," she said in an interview.

"So, our thing is that at least 50 per cent of the jobs should be given to the local Kannadigas in the Central schemes which are implemented in the district," she said.

Noting that Uttara Kannada has a combination of both beaches and temples, Nimbalkar said the district can be developed internationally in a much higher scale than "what actually Goa or Kerala is".

The Congress candidate is also banking on the five guarantee schemes launched by the Siddaramaiah-led government in Karnataka and the promises made by party in its manifesto at the national level.

Responding to a question, she expressed happiness that the Congress has fielded a total of six women candidates out of 28 Lok Sabha constituencies in Karnataka.

While campaigning, Nimbalkar said she was overwhelmed to see a large number of people, especially women, turning up for her rallies despite the intense heat in Uttara Kannada.

"They are very happy that the Congress has given a woman candidate and an educated candidate who herself is a doctor and a gynecologist. So they are excited that, yes, she can be our voice in the Parliament who can fight for our rights," the 47-year-old said.

"I have worked as an MLA (Khanapur), so they have seen my work in the Assembly and the expectations are like, yes, she will be the one who will be speaking for us and that faith is seen in their eyes," she said.

Nimbalkar strongly believes that when women enter any field, it brings a different perspective - be it in terms of management, policy formulation or even as homemakers.

Uttara Kannada is among the 14 constituencies going for polls in Karnataka under second phase on May 7.

Karnataka has 28 Lok Sabha seats and the first phase of polling was held on April 26.

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