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    It’s payback time for celebrities who defaulted

    Synopsis

    Vijay Mallya is the most recent entry to a list of famous personalities who defaulted on their payments. Here are a few others that grabbed headlines.

    ET Bureau
    Vijay Mallya is the most recent entry to a list of famous personalities who defaulted on their payments. Here are a few others that grabbed headlines:

    Vijay Mallya

    The United Bank of India has declared the King of Good Times as a wilful defaulter over a Rs 7.5 crore overdraft, allegedly "without a hearing" Knowing India’s judicial system, it might still be a long while before Mallya is penalised, but the Rs 7,000 crore he owes to 17 banks must be burning a hole in his pocket.

    Mallya has more trouble coming his way, with other lenders like SBI and PNB also in the process of declaring Kingfisher Airlines and its management as wilful defaulters.


    Image article boday



    Subrata Roy

    Mallya’s Force India partner, Roy, has been doing the rounds of courts for a while now. Roy has been arrested over allegations of non-repayment of Rs 24,000 crore deposits to investors. He is currently in the process of selling his assets to raise Rs 10,000 crore as bail money.


    Image article boday



    Amitabh Bachchan

    The Bollywood superstar decided to go corporate and floated ABCL (Amitabh Bachchan Corporation Ltd) in 1995 with big plans. Within a few years, the company was nearly bankrupt. In 1999, Canara Bank moved Mumbai High Court alleging a loan default of Rs 9 crore. But the actor managed to free himself from the financial mess and resurrect his career.


    Image article boday


    T Venkattram Reddy

    In 2013, Reddy’s company Deccan Chronicle Holdings Ltd (DCHL) is said to have owed Rs 4,000 crore to various banks and financial institutions, which led to a CBI probe. Assets of the company were seized as banks aggressively tried to recover their money. The company was forced to sell its IPL team Deccan Chargers after being terminated for violating contract terms.

    Argentina

    The biggest loan defaulter in recent memory is not a person, but a country. Due to a financial crisis, it was declared that Argentina defaulted on a large part of the public debt, which totalled close to $ 132 billion. A change in the political vanguard followed , but the country is still inching its way towards recovery.
    ( Originally published on Sep 04, 2014 )
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