Vijay Mallya and Biocon chairperson Kiran Mazumdar-Shaw after the United Breweries AGM in Bangalore on Thursday. (PTI)

Mumbai, Sept. 4: UB Group chairman and debt-ridden Kingfisher Airlines promoter Vijay Mallya today said he would pursue legal action to shake off the wilful defaulter tag slapped on him by the United Bank of India (UBI).

Mallya made these remarks on the sidelines of the annual general meeting of United Breweries in Bangalore today.

On UBI executive director’s statement that UB Group was given time to present their case, Mallya said, “I cannot get into media debate on what the UBI executive director has said. We were not given hearing, we have not appeared before them, we disagree with their action, and we shall pursue with legal remedies.”

The UBI had on Monday declared Mallya and three other directors of Kingfisher Airlines as wilful defaulters. The airline owes Rs 450 crore to the Calcutta-based bank. The wilful defaulter tag will not only restrict these persons from seeking future loans but may also affect their directorships in other companies.

“In response to the UBI action, I have already issued a statement which says that
we strongly deny the allegations made, that we disagree with the findings of their grievance redressal committee before which we have had no opportunity to appear,” he said.

He added that all legal remedies would be looked into. “We shall pursue all available legal remedies. I have great faith in our judicial system and I shall certainly pursue the legal remedies that are available to me,” he added.

Mallya’s defiant stand comes at a time there are reports that IDBI Bank may also declare him a wilful defaulter. “Whatever the news may be concerning other banks, there is no point in indulging in speculation. We will take each one as it comes,” he said.

Kingfisher Airlines owes more than Rs 6,500 crore to about a dozen banks. It owes Rs 750 crore to IDBI Bank alone.

Responding to a query on the stance Heineken (in United Breweries) and Diageo (the majority shareholder in United Spirits) may take on his board position following the
defaulter tag, Mallya said, “You should ask that question to both Heineken and Diageo directly, these issues have not been raised with me.”

Impact on MCFL

Mallya may have to nominate people outside the UB group to the board of Mangalore Chemicals and Fertilizers Ltd (MCFL) for retaining its management control if he fails to clear the defaulter tag, Zuari group indicated today.

If Mallya fails to clear the defaulter tag, he will have to look for people outside the UB group to get nominated in the board to continue to retain the management control of MCFL, Zuari Group chairman Saroj Poddar said.

He, however, added that “wilful defaulter is irrelevant” as far as his agreement with Mallya over Mangalore Chemicals was concerned.

UB Group has joined hands with Zuari to ward off a hostile takeover bid for MCFL by Deepak Fertilisers.