State Bank Of India has named Kingfisher airlines, United Breweries (Holdings) Ltd (UBHL), the holding company of UB Group and its boss Vijay Mallya as a wilful defaulters.A letter was sent to Mallya late last week on this.
As per reports Kingfisher Airlines has dues of over INR 7,000 crore to a consortium of 17 banks and SBI share was 1600 crores among the dues.The names will be sent to RBI and credit information companies shortly and they will not be allowed to raise funds for five years.
In August last year, the bank had sent a notice to the airline and had given time to represent its case.SBI’S grievance redressal committee has considered the legal representation of Mallya and has found it to be unsatisfactory.
According to RBI guidelines, a borrower is termed a wilful defaulter if he has defaulted amount to the lender even when it has the capacity to repay.With the names were announced as wilful defaulters Mallya and his companies (Kingfisher Airlines and United Breweries Holdings) will not be allowed to raise funds for 5 years.
