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India’s banks can breathe a sigh of relief. On May 8th, a UK court upheld a decision by the <keyword id="6511712" type="ORGANIZATION" weightage="20" keywordseo="karnataka-debt-recovery-tribunal">Karnataka Debt Recovery Tribunal</keyword> regarding <keyword id="6360137" type="COMPANY" weightage="20" keywordseo="kingfisher">Kingfisher</keyword> tycoon <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>’s outstanding dues and maintained a worldwide freeze on his assets. The freeze will prevent Mallya from selling any assets in the England and Wales. Mallya is wanted in India for suspected fraud and money laundering. As a result, a consortium of 13 Indian banks - which includes the state-owned <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword>, IDBI Bank and Punjab National Bank - who extended loans to Mallya’s now-defunct Kingfisher Airlines will be able to to collect $1.55 billion worth of claims against his assets in the UK. The prosecution, which was representing the banks, successfully argued that Mallya “willfully defaulted” on the loans in spite of his considerable financial resources. The case reportedly marked the first time a ruling by an Indian tribunal had been registered in a UK court. Most importantly, it sets a precedent wherein a worldwide freeze can be imposed on a <keyword id="2168141" type="PERSON" weightage="20" keywordseo="Wilful-defaulter">wilful defaulter</keyword>’s assets. The ruling will also give the Indian government’s extradition proceedings against Mallya, which are expected to conclude in July 2018, a much-needed boost. To add insult the injury, the UK court has also barred Mallya’s legal team from appealing the ruling. If they wish to seek recourse, they will have no option but to directly petition the UK’s Court of Appeals. Mallya was <a href="https://www.nytimes.com/2017/04/18/business/vijay-mallya-extradition.html">arrested in April 2017 </a>on an extradition warrant over charges of defrauding his Indian creditors of $1.4 billion in loans. Currently out on bail, he has been absconding in England since March 2016 and refuses to come back to India over fears of an unfair trial. He has several cases pending against him in India over money laundering, tax evasion and credit defaults.

UK court allows Indian banks to collect claims worth $1.55 billion from tycoon Vijay Mallya

As per an internal report of India’s biggest lender, the <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>), there is little hope left of recovering anything substantial from the <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword>. The report says that SBI should expect a hit of about Rs 900 crore because of the bad debts in the grounded airlines.SBI leads a consortium of 14 banks that the Vijay Mallya-promoted airline owes money to and the loans are worth more than Rs 5,000 crore, excluding accrued interest, out of which SBI has a fund-based exposure of over Rs 1,200 crore. "It is the policy of the bank not to comment upon individual accounts and its treatment" an SBI spokesperson told <a href="http://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-now-expects-to-recover-only-part-of-kingfisher-dues-to-take-hit-of-rs-900-crore/articleshow/59008488.cms">ET</a>. As of now, <keyword id="6373968" type="PERSON" weightage="100" keywordseo="Mallya">Mallya</keyword> is in the UK and the Indian government has been fighting tooth and nail to extradite him, so that he can be put under trial for cases related to the airline's loan defaults. Mallya, however, has denied any wrongdoing.Banks now expect to recover about Rs 1,100 crore through the sale of pledged assets that are valued at Rs 1,565 crore, including Mallya's <keyword id="6360137" type="CITY" weightage="100" keywordseo="kingfisher">Kingfisher</keyword> villa in Goa. The villa was sold for Rs 73 crore in April as against the pegged market value of Rs 85 crore. "There are no takers for the Kingfisher Airlines brands which are valued (at) Rs 7-315 crore." a senior bank executive said. "Forget about brands, we have so far have struggled to sell even the real estate assets, such as <keyword id="861838" type="UNKNOWN" weightage="100" keywordseo="Kingfisher-House">Kingfisher House</keyword>, Mumbai."

Lost hopes! SBI expects to recover only part of Kingfisher loans

Banks have rejected debt-ridden <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>’s offer and now the Supreme Court has directed him to make a full disclosure of all assets. 
 
Not only this, the apex court has also sought reply on when Mallya would appear personally in the court after 17 lenders moved the court for the same. 
 
READ ALSO: <a href="http://www.businessinsider.in/Vijay-Mallyas-Rs-4000-crore-offer-doesnt-impress-banks-dont-want-any-terms-or-conditions/articleshow/51680083.cms">Vijay Mallya's Rs 4,000-crore offer doesn't impress banks; don’t want any terms or conditions</a> 
 
"There's no liquid money. Everything is tied up in contingencies. We will need court orders to pay," one of Mallya’s lawyers CS Vaidyanathan said. 
 
The next hearing of the case is on April 26. 
 
READ ALSO: <a href="http://www.businessinsider.in/To-recover-dues-Kingfisher-Airlines-logo-will-also-go-under-hammer/articleshow/51612220.cms">To recover dues, Kingfisher Airlines’ logo will also go under hammer</a> 
 
Meanwhile, the Enforcement Directorate had also asked Mallya to be present on April 9 regarding a Rs 900-crore loan from IDBI Bank. 
 The banks are seeking more than Rs 9,000 crore in dues from loans given to <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword>, which is grounded since 2012. Mallya had left India last month for the UK.

Vijay Mallya to disclose assets, fly back to India as banks reject settlement offer

In a bid to recover more than Rs 9,000 crore, the lenders have now put <a href="http://www.businessinsider.in/searchresult.cms?query=kingfisher+airlines&amp;sortorder=effectivedate">Kingfisher Airlines’ logo</a> on sale with a base price of Rs 366.7 crore. 
 
The lenders have scaled up their efforts to recover the corpus amount from <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA&amp;sortorder=effectivedate">Vijay Mallya.</a> The bids for the logo have to be submitted by April 30 and SBI Cap Trustee Co is in-charge of the auction process. 
 
“This is part of the 'sale of trademarks including the brand value of 'Kingfisher logo,” it stated. 
 
READ MORE: <a href="http://www.businessinsider.in/Vijay-Mallya-debt-fiasco-comes-to-some-good-use-for-Indian-business-schools/articleshow/51496588.cms">Vijay Mallya debt fiasco comes to some good use for Indian business schools</a> 
 
Also, brands and trademarks relating to the label mark of Kingfisher, Fly Kingfisher, the logo of the Flying Bird Device and the word mark 'Fly the Good Times' associated with KFA have been pledged with banks and will be for e-auction on April 30. 
 
However, there is a small catch as it is unclear how <a href="http://www.businessinsider.in/searchresult.cms?query=Heineken&amp;sortorder=effectivedate">Heineken</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=UNITED+BREWERIES&amp;sortorder=effectivedate">United Breweries</a> would take up the logo auction issue. As per reports, the trademarks and other promotional material surrounding the brand 'Fly the Good Times' belong to KFA and it is not clear how another beer company could use it. 
 
"There may not be any legal challenge in selling the brand, but there could be commercial challenges in terms of who would want to buy the brand," Prem Rajani, managing partner at Rajani Associates, a law firm, told ET. 
 
READ ALSO: <a href="http://www.businessinsider.in/Vijay-Mallyas-personal-Airbus-jet-to-be-auctioned-to-recover-governments-dues/articleshow/51406790.cms">Vijay Mallya's personal Airbus jet to be auctioned to recover government’s dues</a> 
 
Till now, banks have attempted to <a href="http://www.businessinsider.in/Mallyas-Kingfisher-House-in-Mumbai-now-on-auction-by-SBI-for-more-than-Rs-150-crore/articleshow/51438555.cms">sell Kingfisher House in Mumbai</a> but did not receive any bids since the base price of Rs 150 crore, too high for many. 
 
READ ALSO: <a href="http://www.businessinsider.in/Vijay-Mallyas-journey-from-a-businessman-to-a-fraudster/articleshow/51328653.cms">Vijay Mallya’s journey from a businessman to a fraudster</a> 
 
(Image: Indiatimes)

To recover dues, Kingfisher Airlines’ logo will also go under hammer

India’s biggest banks, who are pressurising on return of <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA">Vijay Mallya</a> to India, say they cannot be blamed for inaction towards Mallya in the debt case. 
 
In 2010, the <a href="http://www.businessinsider.in/searchresult.cms?query=RBI">RBI</a> (<keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword>) had taken a decision to widen the corporate debt restructuring scheme. 
 
As per experts, this was done to resurrect the ailing <a href="http://www.businessinsider.in/searchresult.cms?query=aviation">Indian aviation industry</a>, which also sent out a message to extend more loans to shore up Mallya's ailing <a href="http://www.businessinsider.in/searchresult.cms?query=kingfisher+airlines">Kingfisher Airlines</a>. 
 
As per a report by Economic Times, banks restructured loans after RBI’s nod and an independent agency’s assessment. 
 "Banks restructured loans based on two factors - RBI permitted to do so and second, based on an assessment from an independent agency, <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> Caps, which endorsed that restructuring of <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> loans would revive the company," Pradeep Ramnath, former chairman of Corporation Bank, told ET. 
 
READ ALSO: <a href="http://www.businessinsider.in/You-have-blood-on-your-hands-employees-of-Kingfisher-Airlines-write-to-Mallya-as-he-owes-Rs-300-crore-in-salary/articleshow/51340295.cms">‘You have blood on your hands’, employees of Kingfisher Airlines write to Mallya as he owes Rs 300 crore in salary</a> 
 
On the contrary, many experts feel the RBI cannot be put under spotlight as the central bank was trying to revive the Indian aviation industry from the slump. 
 
"RBI can't be faulted because loan restructuring was one of the steps taken over a span of couple of years to revive the airline sector," an analyst with a domestic brokerage told ET. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=enforcement+directorate">Enforcement Directorate</a> has summoned <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> and he has a week’s time to appear before the agency.

This one step by RBI led Vijay Mallya to lend huge amount

Over 13 banks including the <a href="http://www.businessinsider.in/searchresult.cms?query=State+Bank+of+India">State Bank of India</a> approached the <a href="http://www.businessinsider.in/searchresult.cms?query=Supreme+Court">Supreme Court</a> on Tuesday to prevent <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Vijay Mallya</a>, once called India’s <a href="http://www.businessinsider.in/searchresult.cms?query=Richard+Branson">Richard Branson</a>, from fleeing the country. 
 
However, <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Mallya</a> seems to have left a few days ago. Oops, too little too late. Catch him if you can! 
 This is a day after the <keyword id="44647" type="ORGANIZATION" weightage="100" keywordseo="debt">Debt</keyword> Recovery Tribunal (DRT) restrained <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Mallya</a> from blowing the Rs. 515 Crores <a href="http://www.businessinsider.in/searchresult.cms?query=Diageo">Diageo</a> paid him. This was in the hope he’ll pay that money to the banks. The banks wanted DRT to freeze <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Mallya</a>'s passport and issuance an arrest warrant to hold him back. The banks didn’t want him to leave as they claim he still owns them over Rs. 9,000 Crores. 
 
This is after <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Mallya</a> recently said he wanted to settle in London. So where did he leave for? No one knows. <a href="http://www.businessinsider.in/searchresult.cms?query=Vijay+Mallya">Mallya</a>'s spokesperson claims she has no information about his whereabouts. He was apparently only communicating through e-mail. A man vanished, like fart in the wind. Cue gif! 
 
The petitioner banks approached the Karnataka High Court but didn’t get any interim order. They grudgingly say the HC failed to protect their interest. The list includes <a href="http://www.businessinsider.in/searchresult.cms?query=State+Bank+of+India">SBI</a>, Bank of Baroda, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Axis Bank, Bank of Baroda, Corporation Bank, Federal Bank and IDBI Bank. 
 
Now they're trying to get him to return. #GharWapsi with a twist, eh? 
 
<a href="http://media.indiatimes.in/media/content/2015/Dec/mal1_1450344577.jpg">Image Source</a>

Vijay
Mallya - the escapee who didn't escape, apparently

Troubles have only mounted for <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA&amp;sortorder=effectivedate">debt-laden Vijay Mallya</a>. From auctioning off his house, <a href="http://www.businessinsider.in/UB-says-Kingfisher-Airlines-logo-only-for-aviation-warns-of-legal-challenges/articleshow/51643679.cms">logo of Kingfisher Airline</a> to <a href="http://www.businessinsider.in/Government-suspends-VijayMallyas-Passport-may-revoke-it/articleshow/51843530.cms">revoking his diplomatic passport</a>, Mallya’s downfall has been like a pack of cards, and the signs had begun to show in 2009 when his airlines for grounded. 
 
The latest on this is that Mallya, who is a Rajya Sabha member, is likely to be expelled from the parliament too. But, his expulsion will not be the first one as 14 MPs have already been expelled from the House before. 
 
READ ALSO: <a href="http://www.businessinsider.in/Vijay-Mallya-makes-another-attempt-this-time-he-is-offering-Rs-6000-crore-settlement/articleshow/51822342.cms">Vijay Mallya makes another attempt, this time he is offering Rs 6,000-crore settlement</a> 
 
The list of MPs expelled from the parliament includes former <a href="http://www.businessinsider.in/searchresult.cms?query=indira+gandhi&amp;sortorder=effectivedate">Prime Minister Indira Gandhi</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=subramanian+swamy&amp;sortorder=effectivedate">Subramanian Swamy</a> and HG Mudgal. Mallya will be the 15th one on the list. 
 
HG Mudgal, who was a Lok Sabha member in 1951, was the first one to be expelled from the Lok Sabha over accepting money for favours in Parliament. 
 
Here is the complete list of MPs who were expelled from the parliament and why

These are the 14 MPs that have ever been expelled from the Parliament. Know why

Employees of the defunct <a href="http://www.businessinsider.in/searchresult.cms?query=kingfisher+airlines">Kingfisher Airlines</a> are vexed and their agony has a solid reason. Apart from not giving dues to several banks, which are now after him to pay Rs 7, 000 crore, <a href="http://www.businessinsider.in/searchresult.cms?query=VIJAY+MALLYA">Vijay Mallya</a> owes Rs 300 crore in salary to around 3000 employees. 
 Nearly 900 employees who are still employed with the <keyword id="6373962" type="CITY" weightage="20" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> on paper and 2000 more who left since 2015 haven’t received their salaries. 
 
While many of the employees have changed their jobs, the ground staff, technicians and engineers are still unemployed. 
 
Irate employees had written an open letter to Mallya. “Your heart is impure and you have blood on your hands. We have so much to tell you but you won’t have patience and time to listen all that. Please do have regret and don’t set precedents dangerous to our country and aspiring entrepreneurs,” stated the employees in the open letter. 
 
READ MORE: <a href="http://www.businessinsider.in/Vijay-Mallyas-journey-from-a-businessman-to-a-fraudster/articleshow/51328653.cms">Vijay Mallya’s journey from a businessman to a fraudster</a> 
 
Many people who have changed their jobs are also facing a tough time as they are not able to get income tax refunds for the <a href="http://www.businessinsider.in/searchresult.cms?query=IT+department">I-T department</a> keeps adjusting it against tax dues which wasn't submitted by Kingfisher. 
 
Kingfisher Airlines closed its operations in 2012 due to cash and credit issues. It sank with total dues of more than $2 billion to banks, taxmen, employees, leasing companies, airports and other business associates. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=banks">Banks</a> have been chasing Mallya to get back more than Rs 7,000 crore. 
 
READ MORE: <a href="http://www.businessinsider.in/A-little-too-late-Mallya-flew-out-of-India-before-banks-could-take-a-stay-order-against-him/articleshow/51323634.cms">A little too late! Mallya flew out of India before banks could take a stay order against him</a>

‘You have blood on your hands’, employees of Kingfisher Airlines write to Mallya as he owes Rs 300 crore in salary

Ex-chairman of United Spirits Ltd, <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword>, has been in news for all the wrong reasons recently. Firstly, it was him fleeing out of the country, and then deciding not to come back even for ED hearings. However, <keyword id="612463" type="UNKNOWN" weightage="100" keywordseo="indian-business-schools">Indian business schools</keyword> have found something worthwhile in his whole debt fiasco, using his success-to-failure story as rich material for discussions of ethics, corporate governance, brand management, entrepreneurship and families. 
 "The Vijay Mallya case could most certainly be the subject of a case study," Debashis Chatterjee, professor at <keyword id="56716" type="COMPANY" weightage="100" keywordseo="IIM-Lucknow">IIM Lucknow</keyword>, told ET. "It should be a subject of discussion in classes on strategy across business schools and the IIMs are no exception. It's about the downfall of a high-profile brand and there's an ethical connotation as well." 
 Not only at IIM-L, IIMs from Bangalore and Indore, <keyword id="565228" type="ORGANIZATION" weightage="100" keywordseo="XLRI-Jamshedpur">XLRI Jamshedpur</keyword>, Indian School of Business (ISB) Hyderabad and Management Development Institute (MDI), Gurgaon are also using Vijay Mallya’s story to explain to its students, the future managers of the industry, the aspects of business and lessons that they should learn. 
 
"This is a live case study for us and we have to build our arguments based on limited resources. A similar 'live' case study discussed earlier was during Satyam," said Kavil Ramachandran, executive director, Thomas Schmidheiny Centre for Family Enterprise, ISB. 
 
Mallya’s strategy of pampering customers at the cost of other stakeholders, including owners, employees, suppliers and society proved to be hard on his business and honour, an example which can teach a lot about organisational behaviour and human resources management to these students. "It also leads to discussion on the obsession in many companies to meet the interests of 'owners' at the cost of other stakeholders," said Abhoy Ojha of ISB. 
 
<a href="http://indiainf1.com/wp-content/uploads/2014/03/Vijay-Mallya-file-2013-SFI-pic-7mar2014.jpg">Image source</a>

Vijay Mallya debt fiasco comes to some good use for Indian business schools

To ensure there’s no rerun of <keyword id="6373968" type="PERSON" weightage="20" keywordseo="mallya">Mallya</keyword> episodes in Indian banks, The Securities and Exchange Board of India (<keyword id="35210" type="UNKNOWN" weightage="100" keywordseo="Sebi">Sebi</keyword>) has mandated all listed companies to inform stock exchanges if they falter on loans. As per the new clause, the company would require to inform the stock exchanges within one working day of the default, according to an ET news report. Currently, listed companies require to disclose material events and information to stock exchanges. Companies make specific disclosures in instances such as delays and defaults in the payment of interest and principal on debt securities, listed non-convertible debentures, redeemable preference shares and foreign currency convertible bonds. To resolve the bad loan burden of the banks, the government and the central bank have started getting lenders to kick off insolvency proceedings against big defaulters. If a borrower is unable to pay on the due dates, according to the new Insolvency and Bankruptcy Code (IBC), the lending bank can initiate the insolvency resolution process on the next day. But the RBI mandates, banks can declare a borrower defaulter only after 90 days. This move by Sebi is significant because may a times, a defaulter makes payment just a few days before 90-day deadline to retain standard asset classification on their loans. Also the new clause would mean the borrower would have limited ability to raise further capital.

You Searched For "Vijay Mallya in debt" and got 10 results

UK court allows Indian banks to collect claims worth $1.55 billion from tycoon Vijay Mallya

Dilsher Dhillon

Lost hopes! SBI expects to recover only part of Kingfisher loans

BI India Bureau

Vijay Mallya to disclose assets, fly back to India as banks reject settlement offer

BI India Bureau

To recover dues, Kingfisher Airlines’ logo will also go under hammer

BI India Bureau

This one step by RBI led Vijay Mallya to lend huge amount

BI India Bureau

Vijay Mallya - the escapee who didn't escape, apparently

Saikat Pyne

These are the 14 MPs that have ever been expelled from the Parliament. Know why

Akanksha Jain

‘You have blood on your hands’, employees of Kingfisher Airlines write to Mallya as he owes Rs 300 crore in salary

BI India Bureau

Vijay Mallya debt fiasco comes to some good use for Indian business schools

BI India Bureau

This is what Vijay Mallya has taught Sebi

BI India Bureau

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