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karan
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Who is Vijay Mallya? - Page 9 Empty Re: Who is Vijay Mallya?

on Tue Jan 15, 2019 7:39 pm
Justice Kurian Joseph asked the most obvious question on Wednesday: "Was there no secured assets on these loans?”
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karan
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on Tue Jan 15, 2019 7:39 pm
Rohatgi replied that when the loans were granted, Kingfisher Airlines was a brand at its peak, with assets worth some thousand crores, and then “it crashed”.
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karan
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on Tue Jan 15, 2019 7:40 pm
“We had some assets [as security] for the loans advanced,” he said.
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karan
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on Tue Jan 15, 2019 7:40 pm
Rohatgi said the proceedings have been pending since 2013.
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karan
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on Tue Jan 15, 2019 7:40 pm
There have been at least 500 hearings in the case before tribunals in Goa and Bengaluru.
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karan
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on Tue Jan 15, 2019 7:40 pm
In 2010, Mallya surrendered goodwill and trademarks of the Kingfisher brand to the bank as security in the event of non-payment of dues.
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karan
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on Tue Jan 15, 2019 7:40 pm
At the time, the brand value was about Rs 3,500 crore which has now reportedly come down to Rs 6 crore and banks are struggling to find even a single buyer for trademark.
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karan
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on Tue Jan 15, 2019 7:41 pm
Mallya might be the poster boy of bank defaults now but he’s not the only one. Loans worth lakhs of crore rupees provided by Indian public sector banks are now classified as non-performing assets or NPAs and nobody knows for sure how much money will be recovered.
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karan
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on Tue Jan 15, 2019 7:41 pm
According to CBI, Mallya managed to get a Rs 900-crore loan from state-run bank Industrial Development Bank of India, which ignored warnings from some of its officers to hastily and unusually clear the massive amount in just a month in 2009. Kingfisher Airlines was already in acute financial distress by then.
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karan
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on Tue Jan 15, 2019 7:41 pm
All enquiries conducted have failed to find evidence of misappropriation of funds by Kingfisher Airlines or myself," Mallya said. “Despite pledging blue chip securities and depositing significant amounts in court, a successful disinformation campaign has ensured my becoming the poster boy of all bank NPAs.”
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karan
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on Tue Jan 15, 2019 7:41 pm
Mallya claimed that he was willing to cooperate in the probe in his financials even as he worked out a one-time deal with the banks.
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karan
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on Tue Jan 15, 2019 7:42 pm
“Personally, I am not a borrower or a judgement defaulter,” Mallya said. He added that SBI has been fully aware of Kingfisher’s financial position for the last four years, indicating that the bank could not pretend to have been caught unawares now that the loans are proving to be irrecoverable.
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karan
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on Tue Jan 15, 2019 7:42 pm
Besides, he added that he was not the only one who owed money to banks.
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karan
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on Tue Jan 15, 2019 7:42 pm
“In fact, banks have NPAs of Rs 11 trillion and have borrowers who owe much more than the amount allegedly owed by Kingfisher Airlines to the banks – a fact never alluded to or widely reported by the media as in my case,” Mallya wrote.
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karan
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on Tue Jan 15, 2019 7:42 pm
He added: “None of these large borrowers (whose debt is significantly more than the KFA debt) have been declared wilful defaulters, but unfortunately, UB Holdings and I have been declared wilful defaulters by certain banks on technical grounds. I have legally challenged these declarations.”
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karan
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on Tue Jan 15, 2019 7:42 pm
Unlikely. Mallya has been more in the news for his lavish lifestyle than his business acumen and that’s something which almost everyone is expecting to continue – unless he ends up in jail.
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karan
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on Tue Jan 15, 2019 7:43 pm
There’s an unmistakable pattern of ostentatious spending and Mallya’s own worsening financial wealth which many claim are interlinked.
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karan
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on Tue Jan 15, 2019 7:43 pm
In January 2016, when all this was still unfolding, Mallya spent a whopping Rs 9.5 crore to get Australian all-rounder Shane Watson to play for his Royal Challengers Bangalore Indian Premier League cricket team this season. He had bought this franchise back in 2008 for about US $111.6 million.
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karan
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on Tue Jan 15, 2019 7:43 pm
Mallya owns a 41.5% stake in the Force F1 team and allegedly, Kingfisher’s money was used to pay the F1 team in 2009 even though the airline’s losses were mounting.
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karan
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on Tue Jan 15, 2019 7:43 pm
What this means is that Mallya has never really cut back on extravagance, no matter what his financial position – and is unlikely to do so now.

What happens next?
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karan
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on Tue Jan 15, 2019 7:44 pm
On Wednesday, Rohtagi told the court that Mallya is likely to be in London. “He has tremendous assets there," he said. "We know he would be there... most likely.”
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karan
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on Tue Jan 15, 2019 7:44 pm
The Hindu quoted Rohtagi as saying that some information about Mallya’s assets was gathered from social media sites, and this showed his properties were mostly abroad. “Only a fraction is in India... maybe one-fifth.”
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karan
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on Tue Jan 15, 2019 7:44 pm
“We are not after anybody’s blood. We want to sit across him and reach a settlement on getting back our money,” Rohatgi said. “The court should ask him to appear here and bring his passport. We also want a disclosure of his assets.”
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karan
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on Tue Jan 15, 2019 7:45 pm
We’ll issue notice and then see,” the court said, while giving Mallya two weeks to respond.
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karan
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Who is Vijay Mallya? - Page 9 Empty Re: Who is Vijay Mallya?

on Tue Jan 15, 2019 7:45 pm
Mallya has been issued notice through his through his company United Breweries (Holdings) Limited, his lawyers, his official Rajya Sabha email address and the Indian High Commission in London.
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