Wilful defaulter tag: Angry Mallya says United Bank is making him a bakra'

September 2, 2014

Wilful defaulter
New Delhi, Sep 2: State-run United Bank of India (UBI) on Monday declared the defunct Kingfisher Airlines, its promoter Vijaya Mallya and its three directors as wilful defaulters after they did not turn up for a meeting with its grievances redressal panel, an official said.

"We have declared Kingfisher Airlines, its chairman (Mallya) and three directors on its board as wilful defaulters as per the RBI circular pertaining to loan advanced to the airline," said a senior official of the bank's recovery cell.

The three directors are AK Ganguly, Subhash R. Gupte and Ravi Nedungadi.

The bank had advanced about Rs 400 crore to the airline in 2006-07 from its Bangalore branch towards working capital and operational expenses.

"The airline is also liable to pay compounding interest on the principal amount of Rs 400 crore we have advanced to it," the official said on condition of anonymity as he was not authorised to brief media.

As per the Reserve Bank of India (RBI) circular, a defaulting company or person will not be allowed to borrow money from any bank and will cease to hold any official post in the company.

Ganguly and Nedungadi are also directors on the board of United Breweries (UB) Ltd. in Bangalore.

The bank's recovery cell summoned Mallya and the directors after a division bench of the Calcutta High Court Aug 28 dismissed the airline's petition to send a legal representation and exempt them from appearing before the redressal panel.

The bank also filed a caveat in the Supreme Court Aug 29 against the airline after the high court ruling last week.

In a belated response, the beleaguered airline said the bank had post-haste proceeded to declare it and its directors as willful defaulters "in respect of an overdraft facility of Rs.7.5 crore" even before a copy of the high court order was made available to the parties and before its special leave petition was listed in the apex court.

"We intend to pursue all available legal remedies, including the SLP filed in the Supreme Court Aug 29 against the high court order," the airline said in a statement from Mumbai late Monday.

According to a report in Economic Times, Mallya hit back at the lender saying the bank had declared him a willful defaulter "without a hearing".

Mallya told ET that UBI had not given him an opportunity to hear his request for legal representation. "Let them prove in court that I am a willful defaulter," he added.

Another report in Times of India quotes Mallya as saying, "They are making me a bakra (fall guy) because they want to set an example for other defaulters."

Observing that being declared a willful defaulter would have serious consequences, including penal, the airline said the bank had deprived it an opportunity to be represented by a trained legal practitioner, resulting in violation of the principles of natural justice.

"The Calcutta High Court failed to consider the most relevant fact that the Delhi High Court ruled Aug 28 in a case we filed against Punjab National Bank (PNB) involving similar facts and circumstances and held that the courts have always leaned towards allowing representation through legal practitioners to obviate any handicap that the person may feel in representing his case," the airline said.

Noting that its prayer to be represented by an advocate in the petition against PNB was allowed by the Delhi High Court through an order, a copy of which was made available to it only Monday, the airline quoted further from the order in support of its stand.

"In cases where adverse decision would have serious civil and pecuniary consequences, denial of representation through a legal practitioner may in given facts be violative of natural justice. Indisputably, the consequences of holding the petitioner as a wilful defaulter would be serious for the petitioner and the petitioner ought to be afforded adequate opportunity to present its perspective on the issue," the order had said.

The Director General of Civil Aviation (DGCA) had suspended the airline's permit in October 2012 on safety concerns and indefinite strike by its employees.

The grounded airline reported a net loss of Rs.4,301 crore for 2012-13.

With an accumulated losses of Rs.16,023 crore and a negative net worth of Rs.12,919 crore, the airline has an exposure of Rs.8,000 crore in the form of debts from a consortium of 14 banks, aircraft leasing firms, airport operators, state-run oil marketing firms and other vendors.

Also Read: Vijay Mallya declared 'wilful defaulter' by United Bank of India

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News Network
April 27,2024

Mangaluru International Airport (MIA) has taken a step towards enhancing aircraft safety and has planned to install a Precision Approach Lighting (PAL) category 1 system near Sri Kordabbu Daivasthana, Unile.

The groundbreaking ceremony was held on Friday. The project involves various works related to the PAL system and aims to be completed in 20 months.

The airport has undertaken this project in accordance with safety recommendations from the ministry of civil aviation and the civil aviation safety and security regulator. The PAL CAT 1 system will provide pilots with improved visibility of runway 24 and guidance during their final landing approach. The system will be installed 900m from the threshold of runway 24, as this end of the runway accounts for 90% of aircraft landings at the airport.

The PAL will be mounted on approximately 18 lattice structures, which is a unique feature of the project. The lights will be fixed to frangible T-shaped structures. The project will complement the installation of runway centerline lights, which has already been completed and is awaiting approval from the Directorate General of Civil Aviation for commissioning.

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News Network
May 3,2024

Bengaluru: In a fresh development in the alleged Hassan sex abuse case, JD(S) MLA H D Revanna, who was accused of sexually harassing his house help, has been booked for kidnapping a victim allegedly sexually assaulted by his son, Hassan MP Prajwal Revanna. The case was filed late Thursday evening at the KR Nagar police station in Mysuru.

The 20-year-old complainant from KR Nagara accused one Sathish Babanna of taking his mother away forcibly and keeping her in an unknown location at the behest of Revanna.

As per the FIR, Revanna has been named as accused 1 while Babanna was accused 2. The duo were booked under IPC Sections 364A (kidnapping for ransom), 365 (kidnapping or abducting with intent secretly and wrongfully to confine a person) and 34 (acts done by several persons in furtherance of common intention).

The complainant claimed that his mother, whose name and age were not revealed, had worked as a help in Revanna’s house and farm in Holenarasipura for six years, quit the job three years ago and returned to KR Nagara. She then worked for daily wages.

“Nearly three to four days before the Lok Sabha election, Sathish Babanna, who is known to us and hailed from our native place, took my mother to Holenarasipura after saying that Bhavani Revanna, the wife of MLA Revanna, had asked for her,” the complainant alleged, adding that Babanna dropped her back on the day of the polls.

Babanna allegedly told the victim’s mother and father to remain silent and evade the police if they came looking for them and to inform him of the developments.

On April 29, at around 9 pm, when the complainant was home, the suspect Babanna arrived, told the complainant’s mother that Revanna had asked for her and took her away on his motorcycle. The complainant claimed that he wasn’t aware of where Babanna took his mother and he had told him that if the police found her, a case would be registered and they would all go to jail.

On May 1, two of the complainant’s relatives called him on the phone and told him that there was a video of his mother being sexually assaulted by Prajwal and that it was a huge case, the FIR noted. He was also informed by his two friends of his "mother's videos being circulated".

When he asked Babanna later that night, he was allegedly told that there was a photo of his mother standing with a stick when Prajwal had quarrelled with someone earlier and an FIR had been registered. Babanna told the complainant that his mother would have to be released on bail, the FIR noted.

“Babanna told me not to speak on the matter on my phone and asked me to talk from a different phone,” he said, seeking action from the police.

The case has been transferred to the Special Investigation Team (SIT) set up to probe the Hassan sex scandal as per the government order.

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News Network
May 1,2024

modiprajwal.jpg

Karnataka Chief Minister Siddaramaiah on Wednesday attacked the BJP over the obscene video case in Hassan district by questioning who gave the accused Prajwal Revanna a visa to go abroad. He also hit out at Union Minister Amit Shah asking why did he gave a ticket to Hassan JD(S) MP Prajwal, who is the accused in the sex scandal case. 

He alleged that former Prime Minister and JD(S) supremo H D Deve Gowda planned the escape of his grandson and Hassan MP Prajwal Revanna abroad. 

“Who gives passport and visa for travelling abroad? It’s the Centre. Can he go without the Centre’s knowledge? It was former Prime Minister H D Deve Gowda who planned and sent him abroad,” the Chief Minister said.

"Prajwal pen drives case is not related to DCM DK Shivakumar. Why did Amit Shah give a ticket to the accused of a sex scandal?" he questioned.

Siddaramaiah also wrote to Prime Minister Narendra Modi requesting him to direct the Ministry of External Affairs and Ministry of Home Affairs to cancel the Diplomatic Passport issued to Prajwal Revanna and ensure his return to face the law.

Prajwal is accused in an alleged sex scandal which is under investigation by a Special Investigation Team (SIT) constituted by the Karnataka government. He is believed to have escaped to Germany shortly after polling in the first phase of elections in the state got over on April 26, in which Prajwal was the JD(S)-BJP combine's candidate from Hassan. 

The Karnataka CM said that SIT will conduct an investigation in a transparent manner in the case.

Earlier, Siddaramaiah wrote on X, "The government has decided to form a special investigation team in connection with Prajwal Revanna's obscene video case. Obscene video clips are circulating in Hassan district, where it appears that women have been sexually assaulted."

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