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Punjab National Bank declares UB group holding firm as wilful defaulter
Other | Photo Credit: Reuters

Punjab National Bank has also identified the UB Group holding company United Breweries Holdings as 'wilful defaulter', as per a stock market disclosure.

In November last year, State Bank of India (SBI) had declared United Breweries and Vijay Mallya as wilful defaulters, though the company had filed a writ petition against the same in the Delhi high court.

“The company is in consultation with its legal counsels will challenge the decision by taking appropriate legal action that may be required in this regard,” United Breweries (Holdings) said.

UB Holdings is corporate guarantor to now non-functional Kingfisher Airlines which has piled up huge debt. Overall exposure of lenders is Rs 6,360 crore, which increases to about Rs 7,000 crore, adding unapplied interest.

The airline has not made any payment of the loan since January 2012. The banks have recovered over Rs 1,600 crore by selling real estate and pledged shares after banks recalled those loans in February 2012.

In September 2014, United Bank of India became the first lender to declare debt-ridden Kingfisher Airlines, its promoter Mallya and other directors wilful defaulters as the company allegedly indulged in diversion of funds by opening multiple accounts.

The other directors declared as wilful defaulters by the Grievance Redressal Committee (GRC) of the bank are Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte.

In June last year, RBI allowed banks to seize control of a company if a debt restructuring fails and sell their stake in the defaulting firm to recover dues, in a step to rein in wilful defaulters and curb the menace of rising bad loans.

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