Banks ask Supreme Court to ban Vijay Mallya from overseas travel
Supreme Court on Tuesday agreed to hear a plea on Wednesday filed by a consortium of 17 PSU banks seeking a direction that industrialist Vijay Mallya be restrained from leaving India.business Updated: Mar 08, 2016 19:36 IST
Worried about the fate of loans worth thousands of crores of rupees given to the now-defunct Kingfisher Airlines, a consortium of 13 banks on Tuesday moved the Supreme Court seeking to restrain industrialist Vijay Mallya from leaving India.
Attorney General Mukul Rohatgi sought an urgent hearing of the petition filed by 13 banks, including the State Bank of India, which also sought the impounding of Mallya’s passport.
A bench headed by Chief Justice of India TS Thakur agreed to hear it on Wednesday.
The banks’ move comes a day after the Enforcement Directorate registered a money laundering case against Mallya and the Debt Recovery Tribunal (DRT) barred him from touching the Rs 515 crore settlement he reached with Diageo. The DRT will hear the matter again on March 28.
The ED case is based on a CBI probe into alleged “wilful default” by the high-flying owner of Kingfisher Airlines on a Rs 900-crore loan in conspiracy with IDBI Bank representatives.
The SBI, the largest lender of Kingfisher, had approached the DRT in Bangalore to restrain Mallya from withdrawing Rs 515 crore he got as a severance package from London--based Diageo.
Mallya had quit the chairmanship of its Indian company, United Spirits Ltd, last month.
Banks Kingfisher Airlines owes money to have demanded “first right” to the Diageo cash, arguing that they were left with unpaid debts worth Rs 7,000 crore when the company collapsed more than three years ago.
The SBI declared Mallya— once known as “The King of Good Times” for his flashy lifestyle and lavish parties— a wilful defaulter last month. A wilful defaulter is one who uses borrowed funds for purposes other than it was meant for.
The SBI and others have also appealed to the Karnataka high court that the businessman be arrested and his passport impounded.
Earlier, former Kingfisher Airlines employees had written an open letter blaming Mallya for the grounding of the carrier and damaging the country’s reputation in the aviation industry.