No HC relief to USL on securities held by IDBI Bank

Senior counsel P Chidambaram, appearing for USL, said the company had paid back Rs 625 crore to the bank. But the bank held back its securities on the grounds that the loans taken by Kingfisher Airlines remain unpaid. 

The high court disposed of a petition of United Spirits Limited (USL) over the non-release of its securities by IDBI Bank even after it repaid a loan. The court has asked USL to approach the lower court.

Senior counsel P Chidambaram, appearing for USL, said the company had paid back Rs 625 crore to the bank. But the bank held back its securities on the grounds that the loans taken by Kingfisher Airlines remain unpaid.

IDBI Bank said it gave a loan to Kingfisher Airlines on the grounds that Vijay Mallya was the chairman of United Breweries Holdings Ltd group, of which USL is a part. It was said UBHL gave a corporate guarantee to the loan transactions of the now-defunct airlines.