State-run United Bank of India on Monday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters.
“We have declared Vijay Mallya and three other directors of Kingfisher Airlines as wilful defaulters,” United Bank of India Executive Director Deepak Narang said.
The Grievance Redressal Committee (GRC) of the bank has declared directors Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte as wilful defaulters.
Post this declaration, these persons and the entity would not be able to borrow from the bank in future. They would also lose Director-level positions in companies.
Criminal proceeding could also be initiated against these persons if warranted. Narang said the decision of GRC would be conveyed to the Finance Ministry, Reserve Bank of India, and Securities and Exchange Board of India for their information and action.
The GRC meeting was convened today after a Calcutta High Court division bench allowed the bank to initiate the process of declaring them as wilful defaulters last week.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks