The Calcutta High Court has dismissed United Bank of India’s (UBI) decision to declare UB Group Chief Vijay Mallya and Kingfisher airlines as wilful defaulters.
As per sources, the Kolkata-based moneylender had in September declared the now grounded Air Transport, its Chairman Vijay Mallya and three directors as wilful defaulters for non-payment of loans of about Rs. 350 crore.
According to a Reserve Bank Of India’s master circular, the decision to classify a borrower as ‘wilful defaulter’ ought to be entrusted to a board of trustees of higher functionaries headed by the official executive and comprising of two general directors or appointee general supervisors as decided by the bank’s board.
[…] Kingfisher not a wilful defaulter, says Hight Court […]