Money Laundering Case Against Vijay Mallya

State Bank of India, which heads a consortium of 17 lenders to the grounded Kingfisher Airlines, had moved the Debt Recovery Tribunal in Bengaluru against the airline’s promoter Vijay Mallya in its bid to recover over Rs. 7,000 crore loans owed by the now-defunct carrier.

Mallya, who owes over Rs 7,200 crore to a consortium of banks led by State Bank of India, has objected to the plea by India’s largest public sector bank seeking the money saying that the payments are being made to him as a person not to compete with Diageo in the liquor business.

“The payments from Diageo Plc to myself are towards my personal non compete obligations globally except in the UK. In effect, I have given up my interests in the spirits business globally at considerable cost,” Mallya said in a statement on Sunday evening.

The Indian banking sector is grappling with rising non-performing assets (NPA). Gross NPAs of public sector banks stood at Rs. 3.60 lakh crore at December-end, up from Rs. 2.67 lakh crore at the end of March 2015.  In Budget 2016, Finance Minister proposed infusion ofRs. 25,000 crore into public sector banks under the ‘Indradhanush’ initiative.

This is How people On Twitter reacted to Vijay Mallya News:

Tihar or Parappana Agrahara.. Where would he prefer?? “@avarakai: Dear @TheVijayMallya – iss saal ka calendar shoot kaha pe karenge aap?”

— Avinash B Avarebeel (@AvinashCKM) March 7, 2016

 

After losing services of Lalit Modi , now India stands to loose Vijay Mallya ‘s services as well. After DRT stays Diageo deal payment.

— Yogesh Singhvi (@SinghviYogesh) March 7, 2016

 

RT doubtinggaurav: Is Modi harassing private citizen Vijay Mallya because he brought back secular hero Tipu’s sword …

— Shashank Raikar (@ShashankTweeps) March 7, 2016

 

People like Vijay Mallya make wealth look so ugly. #Diago

— oldmonk (@eternaloldmonk) March 7, 2016