MALLYA 2 LAST


first_imgSBI, which heads the consortium of 17 lenders toSBI, which heads the consortium of 17 lenders to Kingfisher, has moved the Tribunal in Bengaluru against the airlines chairman Mallya in a bid to recover over Rs 7,000-crore dud loans from him.Besides SBI, Punjab National Bank and United Bank have also declared Mallya, his group holding company UBHL and Kingfisher Airlines wilful defaulters.As part of Diageo deal, Mallya has also relinquished his position to control IPL franchise Royal Challengers Bangalore. However, he has been appointed Chief Mentor of the team and his son Siddharth has become a director.While he has already asserted that remains in charge of his other sporting interest, the Force India Formula 1 team, Mallya said he will remain actively involved in the running of RCB.”My son is a director and I have been appointed Chief Mentor. What does that mean? If I am going away why should I be Chief Mentor? I will be part of the planning and I will be around during the tournament. In my statement, I have said that I want to win the IPL trophy. If I am not associated at all, why would I make that statement,” Mallya said.The lenders are now eyeing the Rs 515-crore bounty sealed by Mallya as part of a sweetheart deal with Diageo to exit United Spirits.Diageo has in return agreed to absolve Mallya of all his “personal liabilities with regard to alleged financial irregularities relating to dealings with UB Group entities.advertisementDiageo is the majority shareholder of USL with a 54.78 per cent holding, excluding the 2.38 per cent owned by the USL Benefit Trust.Mallya personally held a small stake of 0.01 per cent in USL at the end of December 2015, while his group firms owned further 3.99 per cent stake. However, more than half of these shares are pledged with banks.In case of Kingfisher, the trading in its shares have been suspended for long due to its non-compliance to various listing requirements including its failure to make timely disclosure of shareholding data and other details.As per the latest shareholding data disclosure till September 2014, it had over 2.33 lakh small retail investors, over 6,200 HNIs, 13 banks and other domestic financial institutions, as also five promoter entities.Ironically, the number of public shareholders across all categories is higher than the levels before the airline was grounded in October 2012. The total number of public shareholders has gone up during this period from 2.1 lakh to over 2.4 lakh.The company now commands a market cap of just about Rs 110 crore, as against that of close to Rs 10,000 crore before it landed in financial mess leading to its grounding. PTI BS BJ ABKlast_img

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