KFA Default Delays Startups' Aircraft Purchase Plan

Bangalore: Startup carriers are having tough time getting aircraft from leasing companies in view of the default in payment by grounded Kingfisher Airlines of Vijay Mallaya.

Air Pegasus, a Bangalore-based airline, has been trying to get 3 ATR 72/500 aircraft to begin operations in South India for over eight months now.

“The delay is not because of us or DGCA, it is because of KfA,” Shyson Thomas, Managing Director and CEO of Air Pegasus, told Express. The airline had planned to start services by March next year.

Lenders, tax sleuths vie for first right of recovery from Vijay Mallya

Mumbai: Consortium of fourteen banks has challenged revenue dept's attachment notice before Karnataka HC A consortium of 14 banks fighting to recover money they have lent to Vijay Mallya-promoted Kingfisher Airlines has challenged an attachment notice the service tax department issued against the liquor baron in the Karnataka High Court to recover tax dues. Now it's for the court to decide the first right of recovery between secured lenders and sovereign dues.
The revenue department, a couple of months ago, claimed the first right to recover dues by attaching the Kingfisher House in Mumbai, six aircraft and two helicopters, besides freezing bank accounts of the defunct airline.

Kingfisher Airlines' loan default only a 'trickle': Former CAG Vinod Rai

New Delhi: As industrialist Vijay Mallya fights his wilful defaulter tag, former CAG Vinod Rai has said Kingfisher Airlines' loan default is just a "trickle" and the overall problem of huge bad loans at public sector banks can be blamed on 'cronies' using connections to borrow money.

Rai, who was the Comptroller and Auditor General (CAG) during 2008-2013, has also stressed the need to understand the trend of non-performing assets of private sector banks being very low in comparison to that of  public sector lenders.

Vijay Mallya in further trouble, State Bank of India sends wilful defaulter notice

Mumbai:  Days after United Bank of India declared Kingfisher Airlines, promoter Vijay Mallya and three other directors wilful defaulters, country's largest bank SBI today said it has also sent a notice to tag them as "wilful defaulters".

"We have already sent a notice to KFA (to declare it as wilful defaulter). There is a mandatory time that needs to be given to them to respond and that time is currently on," said Arundhati Bhattacharya, Chairperson of SBI.
SBI, which is the lead bank of a lender consortium to the crippled carrier, has an exposure of over Rs 1,600 crore.

State Bank of India too timid to act against Vijay Mallya, the 'defaulter'?

New Delhi: It speaks volumes for the diffidence and timidity of banks that the State Bank of India (SBI) is yet to declare Vijay Mallya, chairman of the bankrupt Kingfisher Airlines, a wilful defaulter. Last week, a much smaller lender, the United Bank of India (UBI), declared Kingfisher and Vijay Mallya a wilful defaulter for not repaying Rs 400 crore after the Calcutta High Court dismissed an appeal by the company against the notice issued to it.
Kingfisher Airlines Ltd owes banks around Rs 7,000 crore and has been grounded since December 2012; even before that the company wasn’t servicing its loans and although the group’s other businesses were faring well, there was no attempt to pay off the loans.

HC directs Kingfisher airlines to pay over Rs 29 lakh to ex-pilot

New Delhi: Cash-strapped Kingfisher Airlines has been directed by the Delhi High Court to pay one of its former pilots over Rs 29 lakh, the amount of his outstanding salary with interest for the period from March 2012 to July 26, 2012.

Justice Manmohan Singh ordered the grounded carrier to pay Rs 28,95,000 to its former pilot, Captain Dinesh Kant Sharma, on his plea seeking payment of his salary for the notice period of five months.

The court also dismissed Kingfisher Airline's plea for "leave to defend".

"Accordingly, the suit of the plaintiff for recovery of arrears of salary of approximately five months of Rs 28,95,000 is decreed. As far as the claim of the plaintiff (Sharma) for interest is concerned, the same is also granted at 10% per annum from the end of each month for which the salary is due till the date of payment," the court said.
Read news in full 03/09/14 PTI/Business Standard

Mallya to challenge Kingfisher's wilful defaulter tag

Bangalore: Kingfisher Airlines Ltd would pursue legal remedies to challenge the decision of state-run United Bank of India (UBI) to declare it as a wilful defaulter, promoter and chairman Vijay Mallya said Thursday.

"We will pursue all legal remedies available with us to challenge the bank's declaration, as we do not agree with its grievance redressal committee's findings," Mallya told reporters on the margins of the United Breweries Ltd's 15th annual general meeting here.

Claiming that the bank had not given the airline an opportunity to explain its position or appear before its panel Aug 28, Mallya said it would be premature for him to speculate on the outcome.

The joyride is finally over for Mallya

Vijay Mallya’s fall seems to be sealed by the Supreme Court’s decision to uphold the United Bank of India’s (UBI) decision to declare him a willful defaulter.
What this means is that Mallya, who is believed to owe Rs 7,000 cr to 17 banks, cannot float new ventures for the next five years. This is a huge blow for the man who once held the Midas touch.
Credit loans too will now be near impossible to come by.It was so different a few years ago. From buying Scotch whiskey maker Whyte and Mackay to F-1 team Force India, to the Royal Challengers Bangalore (RCB) team, Mallya’s name signified flamboyance and success.
But his Achilles heel remained Kingfisher Airlines, one that may bring his empire down – once and for all.

Supreme Court refuses Vijay Mallya's plea against United Bank of India's decision to declare him a willful defaulter

New Delhi: The Supreme Court has refused to accede to Vijay Mallya's plea to strike down state-run United Bank of India's (UBI) decision to declare him a wilful defaulter, dealing a blow to the former liquor baron who has been fending off banks from recovering money they once lent to his now defunct Kingfisher Airlines.
A two judge bench of the top court on Tuesday summarily waived off Kingfisher's objections that its chairman Mallya was declared a "willful defaulter" by the United Bank of India's Grievance Redressal Committee without his lawyer being heard during the proceedings.

Kingfisher to challenge United Bank's decision

New Delhi: Hours after the Supreme Court refused to entertain a petition filed by Kingfisher Airlines against being declared wilful defaulter by United Bank of India, the airline today said it would "vigorously challenge" the bank's decision.

In a statement, the Vijay Mallya-owned company said, "KFA and its directors will vigorously challenge the decision of UBI" and they "strongly deny the allegations of wilful default for alleged non-payment of Rs 7.5 crore to UBI."

United Bank of India first bank to declare KFA and Vijay Mallya as wilful defaulter

United Bank of India has become the first bank to declare Kingfisher Airlines, it's promoter Vijay Mallya as well as three directors on the board of KFA as wilful defaulters.

According to a source close to the development, " the action comes after KFA officials did not show up for the meeting with United Bank's grievance redressal cell this morning at 10:30 AM." The grievance redressal committee of United bank of IndiaBSE 3.84 % is headed by the bank's executive director  D Narang. The bank is also in the process of sending formal notices to the company. Sources say the bank will also inform the Reserve Bank of India about its decision.
"Yes, we have declared Vijay Mallya and three directors as wilful defaulters," UBI executive directors Deepak Narang told ET.

United Bank of India files caveat in Supreme Court against Kingfisher Airlines

Kolkata: State-owned United Bank of India (UBI) has filed a caveat in the Supreme Court against Kingfisher Airlines (KFA) shortly after Calcutta High Court division bench's judgement was delivered yesterday.

"We filed the caveat against KFA in SC shortly after Calcutta HC delivered the judgement yesterday", executive director of UBI D Narang told PTI today.
The division bench of the High Court dismissed a KFA appeal against UBI and upheld decision of single judge of not allowing the company to be represented by a lawyer.

Calcutta High Court dismisses Kingfisher Airlines appeal

Kolkata: Adivision bench of the Calcutta High Court on Thursday upheld a singlejudge bench's order that said Kingfisher Airlines chairman Vijay Mallya cannot rope in a lawyer to defend himself before United Bank of India, which is moving to declare him a willful defaulter.

Kingfisher Airlines should be given loan, other documents by Punjab National Bank: High Court

New Delhi: The Delhi High Court today said that Punjab National BankBSE -1.70 %, which has served a notice on Kingfisher Airlines alleging that it has willfully defaulted in payment of dues of over Rs 770 crore, should give to the carrier copies of documents relied upon by the bank.
A bench of Justice Vibhu Bakhru, which later decided to hear the matter tomorrow again, also said that the ailing airlines can be allowed to be represented by a lawyer in the proceedings to be conducted by the PSU bank against it.

Payment default case: Kingfisher moves HC against PNB notice

New Delhi: Kingfisher Airlines today moved the Delhi High Court against Punjab National Bank's notice alleging the carrier has wilfully defaulted in payment of outstanding dues of over Rs 770 crore.

The PSU bank has also said in the August 21, 2014 notice that if no reply is received within seven days then the airline and its guarantors, United Breweries (Holdings) Ltd (UBHL) and Vijay Mallya would be declared "wilful defaulters".

The matter was mentioned by the airline through senior advocate Rajiv Nayyar before a bench of justices Badar Durrez Ahmed and Siddharth Mridul which listed it for hearing tomorrow.

Kingfisher has sought directions to the bank to rescind the notices and also restrain it from taking any action against the airline pursuant to the same.

The petition has also made the Ministry of Finance and the bank as parties in the case.

Central government Standing Counsel Anil Soni and advocate Naginder Benipal will appear for the ministry.
Read news in full26/08/14 PTI/Business Standard

Kingfisher Airlines Asked to Pay Over Rs. 45,000 for Deficient Service

New Delhi: Kingfisher Airlines Ltd has been asked by a consumer court in Delhi to pay over Rs. 45,000 to a family for failing to refund their cancelled tickets even after seven years.

New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked the company to pay Rs. 45,792 to a Delhi-based family.

The forum's bench, also comprising its member S R Chaudhary, passed the order while noting that even after seven years, the company had not returned a fare of Rs. 20,792 for the cancelled tickets.

"...the complainant has been put to such a harassment and litigation that he is still waiting for return of such small sum of Rs. 20,792. The Opposite Party (airline company) on day one should have offered the fare in court, rather contesting the matter like a suit."

Kingfisher fallout: leasing firms wary of doing biz with India

New Delhi/Bangalore: With Vijay Mallya and other directors of the now defunct Kingfisher Airlines (KFA) running the risk of being declared wilful defaulters by various banks for failing to return loans of over ?7,000 crore, the spotlight has once again turned on the impact the airline going bust will have on the domestic aviation sector.

Analysts say that due to some actions by KFA and subsequently by vendors such as the Airports Authority of India to which Kingfisher still owes a lot of money, global aircraft leasing companies are now reluctant to do business with India.

Kapil Kaul, Chief Executive Officer, Centre for Asia-Pacific Aviation, points out that the challenges faced by lessors to repossess Kingfisher’s aircraft continue to hurt the domestic industry.

IDBI Bank to declare KFA wilful defaulter

Chennai: Public-sector lender IDBI Bank has said it is planning to announce liquor baron Vijay Mallya's Kingfisher Airlines as a wilful defaulter.

The bank, which has a Rs 750-crore exposure to the grounded airline, also clarified it had not been questioned by the Central Bureau of Investigation, though the agency had sought some information from it.

IDBI Bank is the second bank that could list Kingfisher Airlines as a wilful defaulter. Kolkata-based United Bank of India has served a notice on the airline asking why it should not be named a wilful defaulter. Kingfisher Airlines has moved court against the notice. State-owned United Bank of India has a Rs 400-crore exposure to the airline.

Did Vijay Mallya divert United Bank's Rs 336 crore loan?

New Delhi: Based on the findings of a forensic audit conducted by the SBI on Kingfisher Airline's default on Rs7,000 crore loan, the finance ministry says that the company has diverted parts of the loan. The audit report conducted by external agency, Ernst&Young, has observed that chances of the airlines having siphoned off the loans for purposes other than the sanctioned use are 'highly positive'.

According the finance ministry a Rs336 crore loan sanctioned by Union Bank of India (UBI) was withdrawn and deposited in another account with a private bank by Kingfisher. This is not allowed. The audit report has been submitted to the finance ministry two days back. Kingfisher Airlines tops the list of bad debts in the banking sector, which has swelled up to Rs two lakh crore in the last five years.

Kingfisher Airlines could soon be tagged wilful defaulter

New Delhi: Liquor baron Vijay Mallya is in for more trouble with the finance ministry giving the go-ahead to public sector banks to declare Kingfisher Airlines as wilful defaulter.
State Bank of India (SBI) leads a 17-member consortium of lenders trying to recover dues running into over Rs 7,500 crore in principal alone from Kingfisher Airlines. SBI has the maximum exposure of Rs 1,600 crore to the airline, which has been grounded since October 2012.
According to sources, banking secretary Gurdial Singh Sandhu on Tuesday instructed the banks to initiate the necessary action for recovering their loans from Mallya's airline and its associated companies.