Vijay Mallya and three KFA directors have been declared willful defaulters by the United Bank of India, the first such bank. The bank is also sending formal notices to the company apart from informing the Reserve Bank of India about its decision.
Willful defaulters cannot borrow money from banks and cannot remain directors in any company. This follows the Calcutta High Court dismissing KFA's plea against United Bank of India. KFA and United Bank of India have been in a legal tussle after UBI moved to declare the grounded airline as a willful defaulter.
Other players like SBI and PNB are also moving to declare KFA and management as willful defaulters.