Mallya's MCF fight may hinge on 'wilful defaulter' battle

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol BureauVijay Mallya’s bid to hold on to another firm in his crumbling UB empire, Mangalore Chemical & Fertilizer, may now boil down to whether he is able to fight off the ‘wilful defaulter’ tag that has been labeled on him by United Bank of India.On Thursday, Suraj Poddar, chief of the Adventz Group, which is jointly bidding with UB Holdings to increase their stake in MCF – and stave off a takeover challenge by rival Deepak Fertilizers – said the latest development of Mallya being tagged as a ‘wilful defaulter’ may change things a bit.Speaking to reporters after a board meeting at his group firm Texmaco Rail, Poddar said if Mallya fails to clear the ‘wilful defaulter’ tag, he will have to nominate directors from outside the UB Group.In their joint open offer, UB and Adventz’s Zuari Agro had agreed upon continuing with Mallya as MCF chairman for a period of five years.Recently, United Bank of India declared Mallya, along with three senior UB Group officials, as willful defaulters in the Kingfisher default case.According to Reserve Bank of India guidelines, willful defaulters and companies on whose board they serve cannot have access to any credit.While the UB chief has said he would contest United Bank’s decision and has maintained his failure to clear his obligations has not been willful, some believe failure to have his name cleared may also affect the status of the joint open offer that has already been approved by Sebi, and which could rescind its permission.Pune’s Deepak Fertilizers, which owns about 25 percent stake in MCF, recently announced an open offer to acquire 26 percent at Rs 63 a share.Following this, the UB Group, which has 22 percent stake in the firm (though some of it is pledged) teamed up with the Zuari Agro (which has about 16 percent stake in the company), and issued a counter open offer at Rs 68.Recently, a Business Standard report, quoting sources, said Deepak may raise its bid further.Apart from Sebi’s clearance, the Deepak open offer bid has already got clearance from the Competition Commission of India’s approval while the UB-Zuari bid is awaiting one.