SC asks Mallya to disclose assets as banks reject offer

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

File photo of Vijay Mallya (PTI)

On Thursday, the Supreme Court directed businessman Vijay Mallya to disclose his total assets by April 21. The apex court’s order came after a consortium of banks led by State Bank of India rejected Mallya’s offer to pay Rs 4,000 crore by September towards settlement of his loan.

The consortium also asked the Supreme Court that directions be passed to ensure presence of Mallya in the country to show his bona fides that he was serious about settling his dues.

A bench comprising Justices Kurian Joseph and R F Nariman asked Mallya and his companies to file their response by April 21.

“Respondents (Mallya and his companies) should disclose all the properties -movable, immovable, tangible, intangible- and shareholding, both in India and abroad, to show his bona fides for the substantial negotiation,” the bench said.

“Respondents (Mallya and companies) should indicate in their response how much money they are willing to deposit in the court to show their bona fides,” it added.

Mallya, who is facing legal proceedings for alleged default of loans worth over Rs 9,000 crore from various banks, had on March 30 expressed willingness for a settlement by offering a proposal to pay back Rs 4,000 crore by September this year.

After a brief hearing of 20 minutes, the bench posted the matter for further hearing on April 26.

At the outset, the consortium of banks told the apex court that it is not averse to the settlement but Mallya has to show his bona fides by being present in the country.

“Vijay Mallya has to prove his bona fides by presenting himself for suitable negotiation and presenting a contingency plan that he is getting money from X and Y and then he will pay to the banks,” senior advocate Shyam Divan, appearing for the consortium of banks, said.

“For suitable negotiations, he should be present and should declare all his movable, immovable, tangible and intangible assets in both in India and abroad,” he said.

Divan also informed the court said that the proposal given by Mallya in the present form has been rejected and it was conveyed to him after which he made a second offer last evening which is under consideration.

Senior advocate C S Vaidyanathan, appearing for Mallya, said he needs some time to seek further instructions on the decision taken by the consortium of banks.

The consortium of banks agreed to his submission after which the bench asked Mallya to file his response by April 21.

(With inputs from PTI)