Companies & Sectors
SBI contests Mallya firm's claim in tribunal case

Admitting the bank's objections, tribunal presiding officer CR Benkanahalli posted the case to April 21 for further hearing

 

The State Bank of India (SBI) on Wednesday objected to the claim of Rs.594 crore by Vijay Mallya-controlled United Breweries (Holdings) Ltd. which it recovered by selling the UB's shares pledged against loans given to his now-defunct Kingfisher Airlines Ltd.
 
Filing counter-objections in the Debt Recovery Tribunal here to the UBHL claim made on April 5, the bank's counsel said the claim was a tactic to delay justice in Mallya's Rs.9,090-crore loan case of a consortium of banks, including the SBI, before the tribunal.
 
"The claim on the amount at this stage is a deliberate attempt to delay our case for recovering the loans given to the holding company of the airline," SBI counsel said.
 
Admitting the bank's objections, tribunal presiding officer C.R. Benkanahalli posted the case to April 21 for further hearing.
 
The SBI recovered Rs.594 crore by selling 2.6 million equity shares of the 3.5 million shares of United Spirits Ltd. (USL) the holding firm pledged with it for lending Rs.1,600 crore to the airline.
 
The bank sold the shares in April 2013 at Rs.1,836 per share after the airline and its holding firm (UBHL) failed to repay the loan amount due by then.
 
"The holding firm should have filed its objections on or before May 6, 2014, and not in April 2016 when the loan recovery case was at the stage of final hearings," counsel submitted, justifying the bank's decision to sell the shares as per the norms of the Recovery of Debt due to Banks and Financial Institutions Act, 1993, (RDDBFI Act).
 
Contesting the bank's decision to sell its pledged shares in April 2013, UBHL said it suffered a loss as they were sold at a far lower price than their value, which touched a high of Rs.4,080 per share in April 2015.
 
In a related development, the consortium petitioned the tribunal to attach sale proceedings of Mallya's corporate jet (Airbus A319-133ACJ) from auction the service tax department is conducting on May 12-13 at Mumbai airport to recover Rs.370 crore the airline owes it from its commercial operations from 2009-2012.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Mohan Damodaran

10 months ago

DRTs have certainly not covered themselves with glory the way they have allowed the debt recovery cases of banks relating to Vijaya Mallya drag endlessly.SC is lecturing BCCI about accountability but why not look within and streamline the working of DRTs to make them accountable.

SC to examine fresh material in Mayawati assets case

The petitioner said that mere quashing of the CBI FIR on technical grounds could not come in the way of application of the rule of law

 

The CBI on Wednesday said it has no fresh material to register an FIR against former Uttar Pradesh chief minister Mayawati in a case of disproportionate assets, but the Supreme Court said it will examine the fresh material brought forward by petitioner Kamlesh Verma.
 
As the bench of Justice Anil R. Dave and Justice Adarsh Kumar Goel admitted the public interest litiagation for filing an FIR based on the fresh material, Attorney General Mukul Rohatgi told the court that there was nothing for the Central Bureau of Investigation to probe and the BSP leader has already been cleared by the income tax authorities.
 
The apex court had on January 17, 2014, issued notice to the Bahujan Samaj Party supremo on a PIL by Uttar Pradesh resident Kamlesh Verma, who sought the CBI be direc ted to register a first information report on the basis of fresh material Verma said he has collected.
 
The court issued notice to Mayawati on the PIL by Verma, over a year and a half after it quashed an earlier FIR by the CBI on technical grounds.
 
The apex court by its July 6, 2012, order quashed the CBI's FIR holding that by its order in the Taj Corridor case, it has not allowed the investigating agency to undertake roving inquiry against the BSP leader.
 
However, subsequently in May 2013, the apex court reserved its order on the plea seeking the recall of the court's July 6, 2012, verdict, and said its verdict in no way came in the way of the CBI to proceed in a different disproportionate assets case against the former chief minister.
 
The petitioner said he had moved the court for the prosecution of Mayawati, who was found to be allegedly possessing assets disproportionate to her known sources of income following investigation by the CBI.
 
He had said that the outcome of the CBI investigation has to be taken to its logical conclusion.
 
The petitioner said that mere quashing of the CBI FIR on technical grounds could not come in the way of application of the rule of law.
 
Petitioner Verma had told the court that he was seeking its intervention "to undo the wrong that has been done by the politically controlled investigating agencies of the country, in an attempt to protect a high profile political person like Mayawati".
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Gujarat court convicts BJP MP for three years jail for beating doctor

A local court in Amreli district sentenced three years jail term and Rs25,000 fine to BJP MP Naran Kachhadiya and four others for beating a doctor in January 2013

 

A local court in Amreli district on Wednesday sentenced three years jail term and Rs25,000 fine to local Member of Parliament Naran Kachhadiya and four other accused including a woman leader from Bharatiya Janata Party (BJP) in a case related to the beating of a doctor on duty in civil hospital here in January 2013, says a report from DeshGujarat.
 
According to the report, the District Sessions Court, gave all the convicts an interim relief from arrest and a time of one month for making an appeal before the Gujarat High Court.
 
The case pertains to beating of civil hospital doctor Bhimji Dhabi in January 2013 when he allegedly refused to give treatment to the injured son of Madhuben Joshi, leader of BJP women's wing. She then called MP Kachhadiya and his supporters to beat up the doctor, says the report.
 

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