Karnataka HC orders winding up of United Breweries to recover Kingfisher dues

The Karnataka High Court today ordered the winding up of United Breweries Holding Limited (UBHL) in a case relating to recovery of dues from Vijay Mallya's Kingfisher Airlines.

Mallya's now-defunct Kingfisher Airlines also owes over Rs9,000 crore in loans to the SBI-led consortium of 17 banks and much of that credit is reported to have been channeled into UBHL.

As per reports, UBHL holds 11.46 per cent stake in United Breweries and 2.9 per cent stake in United Spirits, which is now owned by British liquor major. Vijay Mallya holds 52.34 per cent stake in UBHL.

Justice Vineet Kothari delivered the verdict while allowing a petition filed in 2012 by IAE International Aero Engines AG, Connecticut, USA.

The KAL and the UBHL owed Rs153 crore to IAE in 2012 when the petition for winding up of the UBHL, which was the grantor for the KAL was filed in 2012.

The Judge pronounced the order sitting at the Dharwad Bench of the High Court via video conference.

The latest blow to Mallya comes after the Central Bureau of Investigation reportedly claimed that he might have used his power to influence lenders through dubious means and get loans from banks.

"I am shocked at CBI allegations. All false and misconceived to say the least what do a bunch of elite police know about business and economics?" Mallya tweeted on 3 February.

Last Thursday, documents accessed by CNN-New18 suggested how a joint secretary in the finance ministry in UPA-II had aided the ailing Kingfisher Airlines in getting loans from several banks that it may have otherwise been denied.

Letters and emails exchanged showed how Amitabh Verma – a then senior bureaucrat in the finance ministry - set up meetings for Mallya with the chairpersons of various banks and got access to information that might have helped it get loans. Sources in the CBI said the agency is "looking into the larger conspiracy of this scam."

United Breweries (Holdings) last week had said that with CBI seizing its documents and records in the ongoing investigation against chairman Vijay Mallya, it was unable to file financial results within stipulated time and had sought time till 15 March to file its quarterly report.

UBHL chairman Vijay Mallya, who has been declared Proclaimed Offender by a special PMLA court in Mumbai on a plea of Enforcement Directorate in connection with its money laundering probe against him, is now living in the UK.

Earlier, in January, CBI had conducted searches in UBHL's office, Mallya's residence, UB towers in Bengaluru in connection with Mallya's loan defaults related to the defunct Kingfisher Airlines.

The agency also arrested senior officials of the defunct airline and former chairman and three other ex-officials of IDBI Bank.