Increasing Troubles for Vijay Mallya: After UBI, IDBI To Declare Him As Wilful Defaulter

After United Bank of India’s suit, now state run financial company IDBI Bank, will declare defunct carrier Kingfisher Airlines and its promoter Vijay Mallya and its three directors as willful defaulters.
“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,” disclosed a senior airline official.
When BI India contacted the airline for a response, company spokesperson Prakash Mirpuri confirmed that IDBI Bank had sent them a letter. The spokesperson also added that the management has taken all necessary action and replied as appropriate.
“It is not possible for a bank to simply declare anybody as a wilful defaulter without following the due process. The RBI circular is clear in this regard. We have robust and comprehensive answers backed by documentation to challenge any such move”, said Mirpuri sometime back.
Interestingly, BI India yesterday reported that State Bank of India had sent a letter to KFA last week, demanding a response within a fortnight. And recently United Bank of India (UBI) declared the defunct airline and Mallya as wilful defaulters and becomes the first state-owned bank to do so. The airline plans to "vigorously challenge the UBI’s decision".