Notice to Mallya for Pledging Rs.800-cr UBL Shares

BENGALURU: The Karnataka High Court on Tuesday issued a notice to liquor baron Vijay Mallya in a contempt petition filed by the bankers’ consortium, which alleged that Mallya violated his oral undertaking not to alienate his assets. The bankers alleged that in violation of the undertaking given in 2013, Mallya’s had pledged 10 million United Breweries Limited shares valued at Rs.800 crore.  Mallya’s defunct carrier Kingfisher Airlines (KfA) has unserviced debts of over Rs.7,000 crore. Earlier, the Debt Recovery Tribunal had ruled in favour of the bankers with respect to the KfA matter. KfA had not submitted a functional revival plan since it was grounded in October 2012. The company saw the expiry of its Air Operators Permit (AOP) expire on December 31, 2012. KfA had two years time to renew its licence but failed to do so.

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