PNB declares Kingfisher Airlines as defaulter

Punjab National Bank has declared Vijay Mallya, M/s Kingfisher Airlines Ltd. and M/s United Breweries (Holdings) Ltd as Wilful Defaulters. As per the Delhi High Court Order, these defaulters were allowed to be represented before the Committee constituted by the Bank through their legal representatives.

After hearing the representatives, the Committee declared them as Wilful Defaulters as per RBI guidelines. The Bank has already initiated recovery proceedings against them under SARFAESI Act as well as by filing recovery suit before Debt Recovery Tribunal.
As per RBI guidelines, once declared as Wilful Defaulters, no additional facilities will be granted to these defaulters by any bank or Financial Institution and they (including the companies and promoters) will be debarred from institutional finance for floating new ventures for a period of 5 years from the date of removal of their name from the list of wilful defaulters.