UCO Bank sends notice to Kingfisher Airlines, asks why it shouldn't be classified as wilful defaulter

The bank has given the airline time to reply on why it should not be declared a 'wilful defaulter'.

hidden October 31, 2014 15:34:07 IST
UCO Bank sends notice to Kingfisher Airlines, asks why it shouldn't be classified as wilful defaulter

Kolkata: City-based UCO Bank has shot offnotices to Vijay Mallya-owned Kingfisher Airlines and UnitedBeverages after identifying the two firms as `wilfuldefaulters'.

"We have sent notices to the defunct carrier KingfisherAirlines and United Beverages, which had given a corporateguarantee to the bank for availing of the loan", a source inUCO Bank told PTI.

The source said the letter sought to explain thereasons behind identifying the two firms as `wilfuldefaulters', adding that time had been given to them forgiving reply on why they should not be declared as `wilfuldefaulters' as per RBI guidelines.

The notices had been sent to the companies' corporateoffices in Bangalore.

He said that Kingfisher Airliners had availed a loanamount of Rs 300 crore as working capital from the bank, buthad defaulted in making the repayments.

The interest accrued on the loan would be to the tune ofRs 100 crore, the source said.

While another city-based United Bank of India haddeclared Kingfisher Airlines as `wilful defaulter', two otherbanks, State Bank of India and Punjab National Bank, were alsopursuing on those lines.

PTI

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