"The recovery department of the bank has sent a letter to them, asking chairman Vijay Mallya and three other directors of Kingfisher Airlines to appear on July 9 before the grievance redressal committee of UBI here," bank's executive director Sanjay Arya said. He said they had been asked to appear so they could get a chance to defend themselves before the bank declares them a wilful defaulter.
The bank had earlier sent a notice to Mallya and he was given 15 days time to give a reply. Subsequently, Mallya requested that he had something to say in this regard.
UBI was the first among other banks in the country to take such a stern step against the grounded airline. The bank's exposure to Kingfisher Airlines was around R350 crore.
Arya said that a lender declares a person a wilful defaulter when it is satisfied that the borrower does not pay despite having the ability to do so.