Wilful Defaulter, Vijay Mallya who has left India earlier this month, has made an offer to repay Rs 4000 Crore. Vijay Mallya has offered to pay Rs 4000 Crore to the banks struggling to cover billion dollars from his Kingfisher Airlines by September 2016. Mallya’s lawyers submitted a copy of the details to the Supreme Court today 30th September 2016, which has given banks a week to respond.
The association of lenders to Kingfisher Airlines, led by State Bank of India (SBI) will need more time to respond to Vijay Mallya’s proposal. Kingfisher Airlines owes SBI about Rs 1,400 crore, Rs 575 crore to Bank of India, Rs 530 crore to Bank of Baroda, Rs 727 crore to IDBI Bank, and Rs 710 crore to PNB.
The Indians Banks will lose more as they had converted a part of the airline’s debt into equity in the year 2008. This backlog in dues will have to be added to the total loan.
Along with Vijay Mallya and Kingfisher, the proposal was also submitted by United Breweries (Holdings) Ltd and Kingfisher Finvest (India) Ltd.
Known as Liquor King, Vijay Mallya is in UK currently and he has refused to fulfill with two orders to make himself available for interrogation in Mumbai. Mallya’s lawyers told Court that Vijay Mallya is available via video conference and there is no emergency for him to head home, and he should not be considered an escapee.
On 9th March 2016, the government had informed Supreme court that Mallya, who is facing legal proceedings for allegedly defaulting loans of over Rs 9,000 crores from various banks, has left the country a few days back.
The bench had then issued notice to Mallya and sought his response within two weeks on pleas filed by the consortium of banks seeking direction for freezing his passport and his presence court.
The bench had allowed the plea of Attorney General that the notice to him can be served through his official Rajya Sabha email ID, the Indian High Commission at London, through counsel representing him before various high courts, Debt Recovery Tribunal and also through his company.
Recently an auction of Kingfisher Airline’s office in Mumbai was totally flopped as there was not a single buyer. The auction was part of the recovery initiative using the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002.
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