Vijay Mallya: Will contest ‘every paisa’ attached by ED

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Bengaluru | Updated: September 30, 2016 6:55:47 AM

Beleaguered businessman and chairman of United Breweries (Holdings) Limited (UBHL) Vijay Mallya on Thursday said he would contest in the court of law the recent move of the government agencies to attach his assets worth over R6,600 crore.

In a pre-recorded video message, which was played at the 100th annual general meeting of UBHL, Mallya said he has account for every single paise of borrowings of Kingfisher Airlines and every single paise of expenditure incurred by the airline through the trust retention account of the company. (Reuters)In a pre-recorded video message, which was played at the 100th annual general meeting of UBHL, Mallya said he has account for every single paise of borrowings of Kingfisher Airlines and every single paise of expenditure incurred by the airline through the trust retention account of the company. (Reuters)

Beleaguered businessman and chairman of United Breweries (Holdings) Limited (UBHL) Vijay Mallya on Thursday said he would contest in the court of law the recent move of the government agencies to attach his assets worth over Rs 6,600 crore. “I assure you my friends that I will contest in the court every paisa attached by the government agencies. I have great faith in the Indian judicial system and I am sure judicial relief will come our way sooner rather than later,” Mallya told shareholders of UBHL.

In a pre-recorded video message, which was played at the 100th annual general meeting of UBHL, Mallya said he has account for every single paise of borrowings of Kingfisher Airlines and every single paise of expenditure incurred by the airline through the trust retention account of the company. “This was managed by none other than the leader of the consortium of bankers the State Bank of India, who have now actually filed criminal charges against me and the company,” he said.

Mallya also termed as “unprecedented in the Indian corporate history” the actions initiated against him and his companies by various government departments. Adverse government policies and high fuel prices led to the fall of his airline venture, he said.

Earlier this month, the Enforcement Directorate (ED) attached assets worth over R6,600 crore against Mallya. The ED seized his farmhouse, flats and fixed deposits in connection with a money laundering case against him and his associates.

“What started with a genuine business failure of Kingfisher Airlines, once known as the Queen of Skies with best ever service and connectivity that India has ever seen, has now turned out to be a nightmare. This is despite the fact that the business failed due to high fuel prices, due to adverse government policies, high taxation and of course the failure of IAE V2500 engines,” Mallya added.

Stating the business is all about success and failure, he said it was unfortunate that only in the select few cases, all the government agencies chose to ignore this very basic fact. “As a concerted effort to make me a poster boy of bad loans and financial crime the government continues to attach properties and threaten other forms of action,” he stated.

He also sought the support of shareholders in his endeavour to seek judicial intervention and get relief so that he can come out of this very “unfortunate situation” quickly.

Mallya also expressed sadness over his absence at the historic 100th AGM of the company. “When a batsman scores a century in Cricket everybody applauds and for a company to celebrate its 100th AGM, is a sign of sustainability, maturity and continued success. It pains me that I am not there personally to share this wonderful occasion with shareholders,” he said.

He said the company will continue to create value for shareholders through its trading and export activities by earning valuable foreign exchange. The company will also achieve a major milestone when it completes the construction of Kingfisher Towers within the UB City premises, which will be a landmark, he added.

At the AGM, the company moved a special resolution for approval from shareholders to enter into a contract arrangement with United Breweries Limited for purchase of materials including beer worth R150 crore for the financial year 2016-17.

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