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Mallya told to appear on Sept.9

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Vijay Mallya

Delhi court asks Mallya to appear on September 9….reports Asian Lite News

Vijay Mallya
Vijay Mallya

A Delhi court on Saturday asked liquor baron Vijay Mallya to personally appear before it on September 9, after allowing the Enforcement Directorate (ED) plea to withdraw the exemption given to him from personal appearance in a case of alleged violation of foreign exchange rules.

The Debt Recover Tribunal (DRT) on Friday quashed the interlocutory application of tycoon Vijay Mallya’s defunct Kingfisher Airlines Ltd for modifying its reply to the original application and its counter-petition seeking Rs 3,000 crore from the 17 banks to which it owes about Rs.9,000 crore debt.

Plea Quashed

“Tribunal’s presiding officer Justice C.R. Benkanahalli dismissed Kingfisher’s plea after the consortium of the banks challenged it saying the time limit to seek modification had lapsed,” counsel for lead bank SBI told reporters.

Opposing the airline’s interim plea, the consortium’s counsel had said as the original application was filed on June 25, 2013, the airline had enough time to plead its case than seeking a modification when the hearing was at the final stage.

Claiming that the consortium had violated the terms of the master debts recast agreement (MDRA), the airline counsel argued that it suffered losses after signing it (agreement) on October 21, 2010 as its banks failed lend more money in time.

“The banks did not lend money to the airline in time as per the agreement, resulting in cash crunch and operational loss,” he said.

The tribunal has been hearing the debt recovery case on almost daily basis after the Supreme Court directed it in May to wind up the arguments in two months.