In a serious blow to UB Groups owner Vijay Mallya, the Bombay High Court has dismissed United Breweries Holding's plea to direct banks to stop selling the shares of United Spirits, and Mangalore Chemicals and Fertilizers to recover the dues of the near-bankrupt Kingfisher Airlines.
The bench headed by Justice SJ Kathawala rejected the plea filed by UBHL.
Liquor Baron Vijay Mallya moved Bombay High Court on Monday challenging the move of State Bank of India (SBI) to sell the pledged shares of United Spirits Ltd (USL) in the open market as a first step towards recovering over Rs 7,700 crore from cash-strapped Kingfisher Airlines.
Media reports said SBI sold shares worth Rs 100 crore last week in the open market after Mallya repeatedly failed to bring fresh capital and restart the grounded airline. The airline has lost its licence amid failure to repay aircraft lessors, fuel suppliers and employees.
Fearing the move will hamper its stake sale deal with Diageo, Mallya moved Bombay HC seeking an order to restrain the lenders from releasing pledged shares in the open market.