HC restrains KFA, UBHL & Mallya from transferring assets

Written by fe Bureau | Bangalore | Updated: Sep 5 2013, 14:30pm hrs
A consortium of banks led by State Bank of India (SBI), seeking to recover dues from Kingfisher Airlines, has secured an interim order from the Karnataka High Court restraining the grounded carrier, its parent United Breweries Holdings and group chairman Vijay Mallya from alienating or transferring assets.

The consortium, which is pursuing recovery proceedings before the Debt Recovery Tribunal, had filed a petition in the Karnataka High Court on August 30 seeking a restraining order.

The banks, which are looking to recover dues of around R6,203 crore, had realised R544 crore from selling pledged shares in April and they had recently taken possession of the airlines headquarters in Mumbai.

While a different bench has previously ordered United Breweries Holdings to restrain from selling or pledging assets, the Karnataka High Courts latest directive, on Tuesday, will extend to Kingfisher Airlines, Vijay Mallya and his investment company Kingfisher Finvest, a counsel for the consortium told FE.