MALLYA-DRT 2 LAST

first_imgGeorge Joseph, counsel for SBI, submitted that going byGeorge Joseph, counsel for SBI, submitted that going by Mallyas track record, banks cannot take his statements on face value and be sure of getting money from Mallya if the USD 75 million are not secured.”Going by Mallyas track record, we cannot take his statements on face value. Once the money is secured, we will be sure that it will not go anywhere, else the bank will not get anything,” he said.Holla also submitted that due to the increasing fuel prices, not only his clients airline Kingfisher Airlines, but also some of the known carriers around the world suffered losses, and to pressure Mallya, asking him to pay the debt “is not okay”.”It is not that (only) Mallyas airline was suffering losses, but other airlines around world also suffered – Swiss Air, theIndian Airlines and four US airlines, also suffered hugelosses. Even as my client was paying up the loans, it is notright to hound my client for the payup,” he said.He said the airline had already paid Rs 1,500 crore and “what is it that the banks want more when he has paid the principal amount in spite of airline industry facing crisis the world over.”Mallya and Kingfisher Airlines owed Rs 7,800 crore toa consortium of 17 lenders led by SBI which had anexposure of over Rs 1,600 crore to the now defunct airline.Since January 2012, the loan was not serviced.Otherlenders include Punjab National Bank, Bank of Baroda, CanaraBank, Bank of India, Central Bank of India, Federal Bank, UcoBank and Dena Bank among others.advertisementLast year, SBI declaredMallya as wilful defaulter.Last month, Punjab National Bank had also declared him, his group holding company United Breweries Holdings and the long-defunct Kingfisher Airlines as wilful defaulters.As part of a deal, Diageo said it would pay USD 40million immediately to Mallya with the balance being payablein equal installments over the next five years.It will alsoabsolve Mallya of all liabilities over alleged financiallapses at the company founded by his family. PTI BDN RA VS ZMNlast_img

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