IDBI follows UBI in declaring Kingfisher, Mallya wilful defaulters
05 Sep 2014
State-run lender IDBI Bank has followed the lead of United Bank of India in declaring the failed Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters, along with three Kingfisher directors (See: United Bank becomes first to declare Kingfisher a 'wilful defaulter').
Reports today said IDBI had initiated the move last week almost simultaneously with UBI.
"Last week, IDBI too had sent a letter to the management regarding their outstanding debts. Vijay Mallya was summoned for a meeting with the senior officials of the bank today morning. But he skipped it," Business Insider India cited a senior airline official as saying.
Kingfisher spokesperson Prakash Mirpuri confirmed that IDBI Bank had sent them a letter. He added that the management has taken all necessary action and replied as appropriate.
Apparently, lead lender State Bank of India had sent a letter to Kingfisher last week, demanding a response to its claims within a fortnight.
The virtually defunct airline and its boss Mallya had earlier this week approached the Supreme Court against the declaration by UBI Bank; but the SC refused to hear the plea. (See: SC rejects Mallya plea against being declared wilful defaulter by UBI).
