Mumbai

State Bank of India, which leads a consortium of 17 lenders of Kingfisher Airlines, today refuted the allegation that the banks were late in taking action against the airline and its promoter Vijay Mallya.

The statement comes amidst the uproar in Parliament today over Mallya leaving the country. Kingfisher owes the banks over Rs 9,000 crore.

There were media reports that SBI, advised by a Delhi-based law firm to move the Supreme Court, High Courts or Debt Recovery Tribunals to stop Mallya from going abroad towards the end of last month, didn’t act promptly.

“As the leader of the consortium, we strongly deny media reports,” SBI said in a statement.

Yesterday the Attorney General Mukul Rohatgi informed the Supreme Court that Mallya left the country on March 2.

Finance Minister Arun Jaitley has also said banks should have acted earlier to stop Mallya from going abroad, even as he warned of “appropriate action” against those responsible for any “inaction” in recovery of dues.

The Serious Fraud Investigation Office sources told PTI that at their last meeting on February 29 here, Mallya had promised to meet them again on March 4.

Last week, CBI director Anil Sinha had blasted the lenders for not coming forward with a complaint in the Kingfisher Airlines “fraud”. This delay helped the company “divert funds and destroy evidence”, he had said.

“Despite our repeated requests, the banks did not file a complaint with the CBI. We had to register the case on our own,” Sinha said.

SBI today claimed it had moved very promptly. Mallya owes more than Rs 1,600 crore to it.

The lender said the day Diageo announced a USD 75 million sweetheart deal for Mallya to leave United Spirits as chairman on February 26, it moved the DRT Bengaluru for advancement of the matter listed for hearing on March 8.

The DRT advanced the matter to February 29, as February 27 and February 28 were Saturday and Sunday (holidays).

“As senior advocates had advised that it will not be possible to directly approach the Supreme Court for seeking relief in respect of the deal, SBI additionally filed four applications in DRT Bengaluru seeking various reliefs,” the bank’s statement said.

On March 2, DRT Bengaluru heard arguments only on the application seeking garnishee relief against Diageo and USL and posted the matter to March 4.

“As DRT Bengaluru did not grant any relief on March 2, SBI filed a writ petition before the Karnataka High Court on March 3 and requested the court to list it for hearing on March 4,” it said.

Since no relief came from the DRT or the High Court, it filed a special leave petition in the Supreme Court on March 8 (5th, 6th and 7th being holidays).

“…on March 9, the Supreme Court issued notice to Mallya and the companies as is known to all,” SBI said.

The consortium of 17 banks has lent Rs 7,800 crore to Mallya and Kingfisher Airlines which has not flown since October 2012 and since January 2012 the loan was not serviced.

Since then they have recovered around Rs 1,240 crore by selling pledged shares and other collateral.

Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Axis Bank, Federal Bank, Uco Bank and Dena Bank among others.

Last year SBI declared Mallya a wilful defaulter while last month PNB also declared him, his group holding company United Breweries and the long-defunct Kingfisher Airlines as wilful defaulters.

Mallya case: CBI changed nature of Lookout Circular

New Delhi

The CBI, which is facing heat over allowing beleaguered businessman Vijay Mallya to go abroad, had changed the nature of lookout notice against him within one month of issuance from seeking his detention while leaving the country to that merely providing information about his travel plans.

The information came as further embarrassment to the agency which has been accused of going soft on Mallya, facing a CBI probe for defaulting on repayment of a loan of Rs 900 crore taken from IDBI.

Sources said, in its October 16, 2015 request to issue a lookout circular, CBI had said if Mallya tries to leave the country, he should be detained at the exit point. Nearly a month later in November, the agency asked for a revised cicular where it asked the Bureau of Immigration to inform it about his departure and travel plans.

The sources said Mallya travelled abroad in October and returned in November, while he made two trips in first and last week of December and also a trip in January besides the recent trip reportedly to London on March 2.

The lookout circular depends on the issuing authority and, unless they ask BoI to detain a person or to stop him from boarding a plane, no action is taken.

The sources said after CBI changed the lookout notice, BoI did not make any attempt to stop him from travelling abroad and every time he travelled the agency was duly informed about it.

When asked why CBI did not seek to impound his passport to stop his movement abroad, the agency sources said Mallya had been cooperating in the investigation by presenting himself for questioning, as and when required, and also providing documents sought by the agency.

The CBI sources said, according to a Supreme Court judgement, passport of a person can only be impounded when he has been charge-sheeted or a trial is pending against him.

Since he had been cooperating, there was no reason to stop him from moving abroad, they said, adding he had appeared for questioning thrice since the lookout notices were issued, once here and twice in Mumbai between December 9 and 12, 2015.

They also said the agency was keeping track of his movement but did not interfere as he always returned.

CBI had registered a case against Mallya, Kingfisher Airlines, Chief Financial Officer of the airlines A Raghunathan, and unknown officials of IDBI Bank in its FIR alleging that Rs 900 crore IDBI loan was sanctioned in violation of norms regarding credit limits on the basis of complaint received from the bank.

Clarifying his position regarding the loan owed by KFA, Mallya, in a recent statement had said after the closure of the airline, since April, 2013, the banks and their assignees have recovered, in cash, an aggregate of Rs 1,244 crore from sale of pledged shares.

“In addition an aggregate of Rs 600 crore is lying deposited in the Karnataka High Court (since July, 2013) and a further sum of Rs 650 crore belonging to United Breweries Holdings has been deposited in the Karnataka High Court since early 2014, being sums realised from the sale proceeds received by United Breweries Holdings from the sale of shares in United Spirits to Diageo Plc in July, 2013,” he had said.

“Thus, the aggregate cash recovery/security available is Rs 2,494 crore,” Mallya said.

The Attorney General informed the Supreme Court yesterday that he has been told by CBI that Mallya has left the country on March 2.

The bench issued notice to Mallya and sought his response within two weeks on pleas filed by a consortium of banks seeking direction for freezing his passport and his presence before the apex court. PTI