United Bank serves notice on UBHL

While state-run lender United Bank of India’s legal battle with Kingfisher Airline chairman Vijay Mallya is on in the Calcutta High Court, the bank has served notice on the airline’s guarantor United Breweries Holdings (UBHL) as per the new wilful defaulter guidelines by the RBI.
The bank has asked UBHL, the parent company of Mallya’s UB Group, why it should not be declared as a wilful defaulter. UBHL has to reply by March 5. United Bank has recently formed a new Identification Committee to deal with the ‘wilful defaulters’ after RBI last month modified its guidelines on master circular on wilful defaulters. “According to the decision of the new identification committee, we have served a notice on UBHL. A 15-day time has been given to the company to reply,” United Bank of India executive director Deepak Narang told FE.