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
December 2,2025

Mangaluru, Dec 2: Mangaluru International Airport responded to a medical emergency late on Monday night. Air India Express flight IX 522, travelling from Riyadh to Thiruvananthapuram, was diverted to Mangaluru Airport after a passenger in his late 30s experienced a medical emergency on board.

The Airport’s Operations Control Centre received an alert regarding the passenger’s health condition. The airport activated its emergency response protocol, mobilising the airport medical team and coordinating with stakeholders including CISF, immigration, and customs. 

Upon landing, airport medical personnel attended to the passenger, assessed his condition, and arranged to shift him to a local tertiary-care hospital for further treatment. The passenger’s relatives accompanied the passenger, who incidentally received necessary medical care on board, which helped stabilise the situation.

Following the handling of the emergency, the flight departed for Thiruvananthapuram at 2:05 am on Tuesday.

"We appreciate the cooperation of all parties involved, and this incident reaffirms our ongoing commitment to prioritising passenger safety and readiness to respond to unforeseen emergencies with professionalism and care," the Airport spokesperson said. 

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News Network
December 15,2025

Mangaluru, Dec 15: Educational institutions in Mangaluru that rely on the popular Mangala Stadium for their annual sports events are bracing for an inconvenience as the city's key sporting venue is set to close its gates for a significant upgrade. The stadium is expected to be unavailable for approximately two months starting from January 15, 2026.

The closure is necessitated by a proposed overhaul of the stadium's facilities, with a special focus on upgrading the synthetic track. Pradeep Dsouza, Assistant Director of the District of Youth Empowerment and Sports (DYES), Dakshina Kannada, confirmed the development.

"Experts have visited the stadium, conducted a thorough inspection, and have given the go-ahead for a complete makeover," Dsouza stated. "Funds have been allocated for the project, and we are currently awaiting the final green signal from state officials to commence the work. We anticipate that the work will likely begin in the second week of January. Consequently, we have stopped renting out the stadium to colleges and other organizations in preparation for the upgrade."

The timing presents a logistical challenge for colleges, as many schools have already concluded their sports meets.

"Colleges will now be organizing their events and will need to find alternative locations to host their sports meets," Dsouza added. He suggested a few potential venues, including the Dakshina Kannada police ground, University College grounds, Panambur grounds, Swaraj Maidan in Moodbidri, and the Mangalore University sports grounds in Konaje.

However, many institutions note that finding a comparable venue will be difficult. While the DK police ground and University College grounds are closer to the city center, they do not possess the extensive facilities and infrastructure offered by Mangala Stadium.

Dr. P Dayananda Pai - P Satisha Govt First Grade College, Carstreet, is one such institution dependent on the stadium. Principal Jayakar Bhandary expressed hope for a swift completion of the work. "We expect the work to be completed at the earliest. If not, we will be forced to look for other venues to host the sports day for our students," Bhandary said, highlighting the pressing need for the city's main sporting facility.

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News Network
December 2,2025

DKSsiddu.jpg

Bengaluru: 'Nati koli saaru' (country chicken curry) considered one of Chief Minister Siddaramaiah’s favourites along with steaming hot idlis was on the breakfast menu at Deputy CM D K Shivakumar’s residence on Tuesday, according to official sources.

The spread also included 'nati koli' fry, vada and pongal, among other items, they said.

In an apparent show of unity, Siddaramaiah visited Shivakumar’s residence for breakfast, just days after the two leaders shared a meal amid a simmering power tussle in the state Congress.

Siddaramaiah drove to the Deputy CM’s residence in Sadashivanagar, where he was received by Shivakumar and his brother D K Suresh, who is a former Congress MP.

Suresh and Kunigal MLA H D Ranganath, a relative of Shivakumar, joined them for breakfast, which featured a mix of vegetarian and non-vegetarian dishes.

Speaking to reporters later, Siddaramaiah said Shivakumar had invited him during his visit to the CM’s residence for breakfast on Saturday.

Asked about the difference between the two meals, the chief minister said, "At his (Shivakumar’s) house it was non-veg, while at my house it was veg. He is a vegetarian, I am a non-vegetarian. I had not prepared non-veg. I told DK to get chicken from the village as you won’t get the original in Bengaluru."

Shivakumar said he had initially invited Siddaramaiah to his residence, but the CM had suggested visiting his place first and reciprocating later. "It was a vegetarian breakfast at the CM’s house on Saturday," he noted.

"Today, I invited him (the CM) to my house. He enjoyed the breakfast, which had his Mysuru taste," Shivakumar added. At this point, Siddaramaiah remarked that Shivakumar’s wife is also from Mysuru.

Saturday’s breakfast at Siddaramaiah’s official residence, held as part of efforts by the Congress high command to ease tensions in the leadership dispute between the two, reportedly included idlis and sambar, according to official sources.

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