Companies

United Bank sends wilful defaulter notice to Kingfisher Airlines

Our Bureau Kolkata | Updated on November 25, 2017 Published on May 29, 2014

Kolkata-based United Bank of India (UBI) has served “wilful defaulter” notices to Vijay Mallya and other directors of the Kingfisher Airlines (KFA). Notices were served on Wednesday, D Narang, Executive Director, UBI told Business Line.

Consequences

If declared a wilful defaulter, the person would not be able to borrow in future and lose Director-level positions in companies.

“We have served wilful defaulter notices to Vijay Mallya and other directors of KFA. They will have to appear before a committee and explain their case,” he said.

Winding up petition against United Holdings (KFA’s holding company) was filed last year (2013). The bank would also have to satisfy certain RBI norms before declaring someone a wilful defaulter.

Exposure

UBI’s exposure to KFA, he said, was running into a few hundred crores. Earlier, it had filed a winding up petition against REI Agro. UBI has also served a similar “wilful defaulter” notice against Bipin Vohra, Managing Director of the Kolkata-based SPS Group.

Shares of the bank closed at ₹47.55, down by 0.83 per cent, at the BSE on Thursday.

Published on May 29, 2014
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