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Vijay mallya owning asset of rs 615 crores including jewellery,car,Ferrari

Vijay mallya owning asset of rs 615 crores including jewellery,car,Ferrari

 Vijay mallya owning asset of rs 615 crores including jewellery,car,Ferrari but astonishingly mallya laid claims only to b merely rs 9500 cash along with no property in form of land or home 

According to affidavit he had no liabilities

According to Indian banks he has been declared as"Wilful Defaulter"

He declared that he ,his spouse or dependants do not own a house ,although reportedly having homes in Goa, Mumbai, US, France, UK

He has deposit of rs 455 crore in banks and NBFC along with rs 591 crore in bonds,shares and debuntures

These included shares in his companies like United Breweries, Kingfisher Airlines, McDowell Holdings Ltd, United Racing and Bloodstock Breeders, Ganpathy Maliya Investments Pvt Ltd, Kingfisher Training and Aviation Services and VJM Investments among others.

He own a Ferrari 1989 model with rs 25 lakhs and jewellery worth rs 4 crores

Despite this rather "modest'' fortune, Mallya was declared the second-richest member in the Rajya Sabha when he joined in 2010. In 2011, Association for Democratic Reforms pointed out that he was among the parliamentarians who had declared the highest remuneration-cumulative of directorship, regular remunerated activity and professional engagement. Mallya with remuneration worth Rs 41.4 crore was second only to Congress spokesperson Abhishek Manu Singhvi who received Rs 50 crore per annum, followed by Arun Jaitley (Rs 10 crore), Ram Jethmalani (Rs 8.41 crore) and Naresh Gujral (Rs 4.79) crore and made it to the Top 5.

The good news for banks is that there is a large chunk of free assets worth more than Rs 5,500 crore to back up the guarantees provided by Vijay Mallya and UB Holdings that will make up for the lack of security against loans of about Rs 7,000 crore to Kingfisher Airlines.


The bad news is that if Mallya does not cooperate, attaching these assets through a court order could take several years as pending taxes, provident funds and other employee dues get a priority in financial claims. Banks also cannot invoke provisions of the law which allows them to directly attach a defaulter's property as it is not pledged to them.

Only things bank can do is that bank can get restraint against the guarantor travelling abroad.Leander's can also bring a stay against a borrower dealing in his aasets. Bank can also invoke personal guarantee to pursue all assets in courts. They could also seek a court order to sieze the funds he has received from diageo

Mallya said India was an important destination and F1 boss Bernie Ecclestone knows it well.

To what extent is Vijay Mallya personally liable to repay the Rs 9,000-crore loans taken by Kingfisher Airlines (KFA)? Bankers say that his personal guarantees amount to Rs 1,500 crore, but laws do not allow for summary attachment of a guarantor's assets and this entails a separate legal process.


It has been nearly three years since lenders to KFA invoked the personal guarantee offered by Mallya and also a corporate guarantee offered by UB Holdings.


Before sanctioning the loan, lenders had obtained an inventory of assets to ensure that Mallya can back up his guarantee in case it is invoked. According to bankers, Mallya had provided details of shares, real estate and other assets amounting to Rs 1,500 crore over a period of time. While these assets were listed by the guarantor, they are not pledged as most personal guarantees were unsecured


While bankers cannot summarily attach and sell personal assets on the strength of a personal guarantee, they can seek a stay against the borrower dealing with those assets. Bankers also have the right to seek a restraint on the guarantor leaving the country.


"Since the Kingfisher House was a pledged asset, the banks could under provision of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act attach it and put it on the block. This process does not apply to other assets that are not secured," said a banker.


The unsecured personal guarantee provides banks a claim on all assets of Mallya which are not specifically pledged to them on account of earlier loans. With the invocation of the personal guarantee, banks can now pursue in court all these assets which includes free shares in United Breweries (UBL) and other assets that he holds through group companies. A majority of Mallya's 32.8% shareholding in UBL is pledged. And banks offloaded some part of it in the last two years, which was mopped up by Heineken.

Banks can also seek a court order to seize the funds that Mallya has received from British partner Diageo.

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