CBI registers fresh case against Mallya

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The Central Bureau of Investigation (CBI) has registered a fresh case against business tycoon Vijay Mallya, his defunct Kingfisher Airlines and United Breweries after a complaint by the State Bank Of India (SBI) in connection with a loan default, an official said on Saturday.

The SBI filed the complaint on behalf of consortium of 17 banks for causing loss of Rs 6,027 crore.

"We have registered a case against Mallya on the complaint of SBI," a CBI official told IANS.

"It was a lease that SBI and its consortium of banks advanced various credit facilities to Kingfisher airlines," the official said.

The official said Kingfisher Airlines availed credit facilities of SBI as well as various other banks during 2009-10. In this period, the company failed to meet financial payment commitments.

"Kingfisher Airlines did not keep its account with the consortium of banks regular and its accounts became non profitable," the official said.

The consortium of banks, therefore, recalled the credit facilities and also invoked the corporate guarantee of UBHL and personal guarantee of Vijay Mallya

According to the official, the banks in the complaint have said Mallya "deliberately" did not repay the outstanding amount of the consortium of banks.

The banks also said there was a conspiracy among the group companies, promoters, and others unknown to cheat the consortium of banks.

Mallya flew to London on March 2 this year just days before a consortium of lenders knocked the Supreme Court's doors to recover Rs 9,431.65 crore in loan and interest.

--IANS

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