United Bank of India has declared Kingfisher Airlines and its promoter Vijay Mallya and three directors as wilful defaulters, thus becoming the first bank to do so. According to an official of the bank, KFA officials did not appear for a meeting with the bank’s grievance redressal committee which was to discuss the issue. The bank is now in the process of sending formal notices to the company. Deepak Narang, ED of the bank, confirmed the action. Wilful defaulters cannot borrow money from banks and continue as a director in any company. Narang said the bank had requested the company officials to appear before the committee but they failed to do so and hence the bank has declared them wilful defaulters. The three directors of the company declared as wilful defaulters are A.K. Ganguly, Subhash R Gupte and R. Nedungadi. The Calcutta High Court had dismissed Kingfisher Airline’s plea against the bank in declaring the airline and its directors as wilful defaulters. The airline is likely to approach the Supreme Court in this case. The bank has an exposure of between Rs 350 crore and Rs 400 crore to the company.
