Mallya & UB Holdings fail to get Rs 225 cr Kingfisher Airlines commission

Posted By: Religare
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Vijay Mallya and his UB group's holding company have failed to get commissions worth about Rs 225 crore for providing guarantees to the lenders of Kingfisher Airlines, as its lenders asked the carrier not to make any such payments.

These commissions pertain to the aggregate payments for a period from January 1, 2011 to March 31, 2013 and include an amount of little over Rs 100 crore for the last fiscal 2012-13, Kingfisher Airlines has said.

The disclosure has been made by the grounded airline itself as part of the 'notes to the accounts' of the company's fourth quarter financial results for the period ended March 31, 2013.

"The consortium bankers pursuant to the RBI's guidelines directed the company (Kingfisher) not to make payment of commission and reverse all entries relating to commission to the guarantors for issuing guarantees at the request of the company to its bankers with effect from January 1, 2011," Kingfisher said.

"The company communicated the matter to the concerned guarantors, United Breweries Holdings Ltd (UBHL) and Vijay Mallya respectively, who have together with Kingfisher Finvest India Ltd filed a suit in the Bombay High Court, against the consortium of bankers..." it added.

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