Mallya offers to repay banks Rs 4000 crore by Sept

RSTV Bureau
Finance Minister Arun Jaitley criticised Vijay Mallya for bringing bad name to private entrepreneurs.

File photo Vijay Mallya for bringing bad name to private entrepreneurs.

Liquor baron Vijay Mallya has proposed to repay a loan amount of Rs 4000 crores to the banks by September this year.

The proposal from Mallya, Kingfisher Airlines Ltd, United Breweries (Holdings) Ltd and Kingfisher Finvest (India) Ltd was submitted in a sealed envelope in the Supreme Court on Wednesday.

A bench comprising Justices Kurian Joseph and R F Nariman allowed the consortium of banks a week’s time to respond to the proposal and posted the matter for further hearing on April 7.

Mallya has defaulted on a loan amount of Rs 6903 to a consortium of banks including the State Bank of India.

Senior advocate C S Vaidyanathan, appearing for Kingfisher and Mallya said that they have given a proposal to the consortium of banks as to what can be done under the given circumstances. He

added that a copy of the proposal was given today to the consortium of banks. He said the proposal was prepared after having discussions with the parties through video conferencing.

The senior advocate appearing for the consortium of banks said he would like to go through the proposal and then respond.

On March 9, the government had informed the apex court that Mallya, who is facing legal proceedings for allegedly defaulting loans of over Rs 9,000 crores from various banks, had left the country.

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 before the apex court.

The AG had said that an amount of over Rs 9,000 crore was due to various banks and, on one pretext or the other, Mallya avoided to settle them.

Rohatgi had called for attaching Mallya’s money and property as Mallya had assets abroad which are far excessive to loans secured by him in India.

The banks have also sought a direction to Mallya to “furnish suitable security for his appearance before the DRT” during the pendency of banks’ original applications for recovering debts.

(With inputs from PTI)