Indian government has rejected the re-appointment of
liquor baron Vijay Mallya as managing director of Kingfisher Airlines.
In a statement, Kingfisher, which has not flown
since 2012, said Ministry of Corporate Affairs had rejected an application for
Mallya's re-appointment, without detailing why.
The airline founded by Mallya failed to make a
profit during the eight years from launch to the grounding of its fleet in
October 2012, and has been unsuccessful in efforts to find new investors to
revive its operations.
Indian banks want Mallya to help repay more than $1
billion of loans Kingfisher owes to a consortium of largely state-run banks.
Some banks have already declared Mallya a
"wilful defaulter", which in Indian law would mean that he could be
forced to stand down from any corporate posts and could damage the fundraising
prospects of businesses with which he is associated.
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