Vijay Mallya Chairman of Kingfisher Airlines has been identified as a Wilful Defaulter may Arrest soon
Vijay Mallya Chairman of Kingfisher Airlines has been identified as a Wilful Defaulter may Arrest soon
The ambition of liquor baron Vijay Mallya and Zuari chief Saroj Poddar to jointly own a controlling stake in Mangalore Chemicals and Fertilizers might not be smooth sailing, despite the Securities and Exchange Board of India’s approval to their open offer for additional stake in the fertiliser company.
United Bank of India, one of the many lenders to Mallya’s now-grounded Kingfisher Airlines, has alerted Sebi that it had identified the Airline as a ‘wilful defaulter’.
“The bank has requested Sebi to reconsider its approval to the Mallya-Poddar open offer,” said a person familiar with the development.
A senior executive confirmed the bank had alerted Sebi on the issue.
“On July 17, the bank wrote to the Sebi Chairman. . . It appears Kingfisher Airlines’ group companies have money to make acquisitions but not to repay the dues of the Airline,” said the banker who did not wish to be named.
"In this case, Kingfisher Airlines has been identified as a wilful defaulter.
"But since the company has moved court, the bank is yet to declare it as a wilful defaulter.
"This has been explained to Sebi,” the banker said.
According to the Reserve Bank of India guidelines, a wilful default happens when an entity does not repay its dues despite having the capacity to pay and does not use the borrowed money for the purpose a loan was availed of.
For instance, if a borrower uses short-term working capital funds for long-term purposes or deploys the borrowed money for creation of assets other than those for which the loan was sanctioned, it is interpreted as diversion of funds and the borrower is classified as a ‘wilful defaulter’.
A spokesperson for Zuari declined to comment.
Kingfisher Airlines had moved the Calcutta High Court challenging UBI’s communication that had asked board members, including Mallya, to meet the bank officials for an alleged wilful default on Rs 400 crore (Rs 4 billion) of loans.
Mallya, through UB Group, holds a 21.98 per cent stake in MCF.
He has joined hands with Poddar, who is competing with Deepak Fertilisers for a controlling stake in MCF for over a year now.
If Poddar manages to get management control at MCF, Mallya is expected to have a considerable say in the functioning of the company.
According to an agreement signed between UB Group and Poddar’s Adventz Group on May 12, Mallya will remain the Chairman of MCF for the next five years if they jointly gain a controlling stake in the company.
Also, Mallya will be able to appoint three directors on the board and will have the right of first refusal over Poddar’s shares in MCF.
Deepak Fertilisers currently owns a 25.3 per cent stake in MCF and has made an open offer, at Rs 63 a share, for an additional 26 per cent stake.
To counter this, Poddar and Mallya have jointly made an open offer for a similar stake at Rs 68.55 a share. Sebi had approved both these open offer proposals last month. Poddar, through Zuari, holds a 16.43 per cent stake in MCF.
Vijay Mallya may have to exit company boards if declared 'wilful defaulter'
A wilful defaulter tag may force UB Group boss Vijay Mallya to quit the boards of India's largest alcoholic beverage companies, dealing a big blow to the tycoon whose jet-setting lifestyle once won him…
Vijay Mallya's USL Chairmanship under threat
Vijay Mallya may quit UBL board if declared 'wilful defaulter'
Vijay Mallya may have to exit company boards if declared ...
Mallya to quit the boards of India's largest alcoholic beverage companies, …
Vijay Mallya's USL Chairmanship under threat - The ...
Vijay Mallya's continuation as Chairman of USL, a Diageo company, could become problematic if the Calcutta HC declares him a wilful defaulter, key lawyers have
Vijay Mallya may quit UBL board if declared 'wilful defaulter'
the board of his liquor compaies United Spirits Ltd (USL) and United Breweries Ltd
Vijay Mallya May Lose Company Board Place if Declared
United Breweries Limited (UBL) group owner Vijay Mallya may have to quit the boards of India's largest alcoholic beverage companies, if he is declared a 'wilful ...
Vijay Mallya may have to exit company boards if declared
Vijay Mallya UB Group Chairman Vijay Mallya, who currently heads the board of United Spirits and United Breweries, may have to exit the company boards in the event ...
Vijay Mallya may lose United Breweries directorship if ...
Kingfisher Airlines promoter Vijay Mallya,is s set to lose directorship in the board of United Spirits Ltd (USL) and United Breweries Ltd (UBL), India's leading ...
Mallya-Poddar bid for MCF hits UBI hurdle - Rediff.com ...
wilful defaulter. | Mallya-Poddar bid for MCF hits UBI hurdle
Vijay Mallya may have to exit company boards if declared ...
Bank fights Mallya MCF bid: Will KFA claim another UB firm? According to a report in the Business Standard that quoted persons privy to the development, United Bank ...
Mallya gets more time on wilful defaulter tag | Business ...
Vijay Mallya House in Bangalore,
Vijay Mallya House in Goa,
Vijay Mallya Residence,
Vijay Mallya Biography,
Vijay Mallya House,
Vijay Mallya Cars,
Siddharth Mallya Marriage,,
Siddharth Mallya Cars,
Read more about Mallya gets more time on wilful defaulter tag on Business
The ambition of liquor baron Vijay Mallya and Zuari chief Saroj Poddar to jointly own a controlling stake in Mangalore Chemicals and Fertilizers might not be smooth sailing, despite the Securities and Exchange Board of India’s approval to their open offer for additional stake in the fertiliser company.
“The bank has requested Sebi to reconsider its approval to the Mallya-Poddar open offer,” said a person familiar with the development.
A senior executive confirmed the bank had alerted Sebi on the issue.
"In this case, Kingfisher Airlines has been identified as a wilful defaulter.
"But since the company has moved court, the bank is yet to declare it as a wilful defaulter.
"This has been explained to Sebi,” the banker said.
A spokesperson for Zuari declined to comment.
Mallya, through UB Group, holds a 21.98 per cent stake in MCF.
He has joined hands with Poddar, who is competing with Deepak Fertilisers for a controlling stake in MCF for over a year now.
If Poddar manages to get management control at MCF, Mallya is expected to have a considerable say in the functioning of the company.
Also, Mallya will be able to appoint three directors on the board and will have the right of first refusal over Poddar’s shares in MCF.
Deepak Fertilisers currently owns a 25.3 per cent stake in MCF and has made an open offer, at Rs 63 a share, for an additional 26 per cent stake.
To counter this, Poddar and Mallya have jointly made an open offer for a similar stake at Rs 68.55 a share. Sebi had approved both these open offer proposals last month. Poddar, through Zuari, holds a 16.43 per cent stake in MCF.
Vijay Mallya may have to exit company boards if declared 'wilful defaulter'
A wilful defaulter tag may force UB Group boss Vijay Mallya to quit the boards of India's largest alcoholic beverage companies, dealing a big blow to the tycoon whose jet-setting lifestyle once won him…
Vijay Mallya's USL Chairmanship under threat
Vijay Mallya may quit UBL board if declared 'wilful defaulter'
Vijay Mallya may have to exit company boards if declared ...
Mallya to quit the boards of India's largest alcoholic beverage companies, …
Vijay Mallya's USL Chairmanship under threat - The ...
Vijay Mallya's continuation as Chairman of USL, a Diageo company, could become problematic if the Calcutta HC declares him a wilful defaulter, key lawyers have
Vijay Mallya may quit UBL board if declared 'wilful defaulter'
the board of his liquor compaies United Spirits Ltd (USL) and United Breweries Ltd
Vijay Mallya May Lose Company Board Place if Declared
United Breweries Limited (UBL) group owner Vijay Mallya may have to quit the boards of India's largest alcoholic beverage companies, if he is declared a 'wilful ...
Vijay Mallya may have to exit company boards if declared
Vijay Mallya UB Group Chairman Vijay Mallya, who currently heads the board of United Spirits and United Breweries, may have to exit the company boards in the event ...
Vijay Mallya may lose United Breweries directorship if ...
Kingfisher Airlines promoter Vijay Mallya,is s set to lose directorship in the board of United Spirits Ltd (USL) and United Breweries Ltd (UBL), India's leading ...
Mallya-Poddar bid for MCF hits UBI hurdle - Rediff.com ...
wilful defaulter. | Mallya-Poddar bid for MCF hits UBI hurdle
Vijay Mallya may have to exit company boards if declared ...
Bank fights Mallya MCF bid: Will KFA claim another UB firm? According to a report in the Business Standard that quoted persons privy to the development, United Bank ...
Mallya gets more time on wilful defaulter tag | Business ...
Vijay Mallya House in Bangalore,
Vijay Mallya House in Goa,
Vijay Mallya Residence,
Vijay Mallya Biography,
Vijay Mallya House,
Vijay Mallya Cars,
Siddharth Mallya Marriage,,
Siddharth Mallya Cars,
Read more about Mallya gets more time on wilful defaulter tag on Business
Comments
Post a Comment