Trouble Mounts For Vijay Mallya, Creditors Move High Court Seeking His Arrest

Admin 05-Mar-2016 14:51:07 Inothernews

Trouble Mounts For Vijay Mallya, Creditors Move High Court Seeking His Arrest


The Karnataka High Court on Friday ordered issue of notice to liquor baron Vijay Mallya, his defunct Kingfisher Airlines and nine other respondents on a petition filed by bankers, including SBI, seeking his arrest and impounding of his passport for defaulting on loans. The notice, issued by Justice AS Bopanna, came even as the Debt Recovery Tribunal (DRT) reserved its order on one of the four applications filed by State Bank of India, seeking securement of the lenders' first right on the payout from Diageo to Mallya. Thirteen bankers, including SBI approached the high court seeking arrest of Mallya and impounding of his passport along with two other pleas after they moved the DRT to take up their pleas on a priority basis. The top state-run lender has approached DRT seeking action against the UB Group promoter for defaulting on loans. SBI, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, had moved DRT here against the airline's chairman Mallya in its bid to recover over Rs 7,000 crore due loans from him.



Holla also submitted his client was a "small-time" defaulter unlike companies like Reliance who he claimed are bigger defaulters and the banks were hounding small defaulters and leaving big defaulters off the hook.

"Recently the RBI had said that these banks do not take action against large fries, but small fries. My client Mallya is a small defaulter compared to Ambani's Reliance.

Some of the companies have defaulted to the tune of Rs 40,000 crore, and nothing happens to them," he claimed.

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