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Mallya ready to pay banks Rs 4,000 cr by Sep: Lawyers to SC

Hindustan Times logo Hindustan Times 30-03-2016
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Embattled liquor tycoon Vijay Mallya is ready to pay a part of the Rs 9,000 crore debt that he owes to banks, his lawyers told the Supreme Court on Wednesday.

Mallya offered to pay by September Rs 4,000 crore of the Rs 6,903 crores that were taken as loans by him and his companies in 2014.

His lawyers said Rs 2,000 crore will be paid after a suit against General Electric is decided in a Bengaluru court.

The court gave a week’s time to a consortium of banks to respond to Mallya. “If you want to reject it, do so,” the court told the State Bank of Indian counsel.

Mallya’s counsel asked the proposal to be kept a secret as the “media vitiates the atmosphere” but the request was rejected.

Mallya left India on March 2, triggering outrage as he was under probe for alleged loan defaults by the Central Bureau of Investigation and the Enforcement Directorate.

When the SC asked about Mallya’s whereabouts, his lawyers said the tycoon needn’t be physically present for court proceedings and that he had two video conferences with banks already.

A consortium of 17 banks – led by State Bank of India -- had approached the SC to bar Mallya from leaving India, worried about the fate of their loans worth thousands of crores given to the now-defunct Kingfisher Airlines that he headed.

The ED case is based on a CBI probe into alleged “wilful default” by the high-flying promoter of Kingfisher Airlines on a Rs 900-crore loan in conspiracy with IDBI Bank representatives.

SBI, the largest lender to Kingfisher, had approached the DRT in Bengaluru to restrain Mallya from withdrawing the Rs 515 crore he got as a severance package from Diageo, the world’s largest spirits maker.

Slideshow: Vijay Mallya's life in pics

Liquor baron Vijay Mallya’s life in pictures: Vijay Mallya, the owner of Kingfisher is facing legal action for allegedly defaulting on loans of Rs 9,000. Mallya, who is also a member of Rajya Sabha, has been asked by the Supreme Court to appear before it on March 30. (Express archive)

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