Kingfisher default bill: This is how much defunct airline owes to banks; largest dues to SBI

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Updated: September 14, 2018 10:50:30 AM

In 2014, the United Bank of India had announced Mallya as 'wilful defaulter'. Punjab National Bank and SBI followed the suit soon after.

Vijay Mallya is currently on an extradition warrant since his arrest in April last year.

Absconding businessman Vijay Mallya’s defunct Kingfisher Airlines (KFA), which had a total loan default of approximately Rs 9,091.40 crore at the end of November 2015 to a group of 17 banks, has largest dues (about Rs 1,600 crore) to the state-run lender State Bank of India (SBI), as per a breakup of default amounts reported by The Indian Express in 2016.

After SBI, the airline owes Rs 800 crore each to Punjab National Bank and IDBI Bank. It also owes Rs 650 crore to Bank of India, Rs 550 crore to Bank of Baroda, Rs 410 crore to Central Bank, Rs 320 crore to UCO Bank, Rs 310 crore to Corporation Bank and Rs 430 crore to United Bank of India, among others, data showed.

In 2014, the United Bank of India had announced Mallya as ‘wilful defaulter’. Punjab National Bank and SBI followed the suit soon after. In 2015, the service tax department took up non-payment of service tax worth Rs 115 crore by the defunct airline and moved the Bombay High Court in 2016, asking to seize his passport. Kingfisher Airline defaulted on crediting about Rs 372 crore of income tax deducted at source from its employees too.

Mallya, who was once the king of the good times, is currently on an extradition warrant since his arrest in April last year. Notably, the Modi government has put forth its demand to extradite Vijay Mallya on the charges of fraud and money laundering. He is currently facing atleast 27 cases in various courts which include 22 relate to only loan defaults.

The fugitive businessman, who has so far denied any wrongdoing, recently set off a fresh controversy after making a startling comment in London outside Westminster Magistrates’ Court, where his extradition case is being heard, that he had met with the finance minister Arun Jaitley before leaving India in 2016 and also made a settlement offer for the bank dues. Shortly after the startling claims by former liquor baron, Arun Jaitley said that he never gave any appointment to him, thus question of meeting him does not arise.

Vijay Mallya had earlier claimed that Indian jails are overcrowded and there is no hygiene. The Indian government recently showed a video of Mumbai jail to the UK court to take a decision on the jail conditions, whether they are good enough or not, and send Mallya back to India.

In June, Mallya claimed that he wanted to divest his assets in India worth Rs 139 billion to repay creditors, including public sector banks. The Enforcement Directorate has also moved the court against the businessman, seeking to declare him a ‘ fugitive offender’ under the new law passed by the Parliament and also confiscate his assets worth Rs 12,500 crore.

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