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Vijay Mallya increases settlement offer to banks

MOTOR-RACING-PRIX/ Beleaguered liquor baron Vijay Mallya

Beleaguered liquor baron Vijay Mallya has increased his settlement package to consortium of banks as he has been reeling under serious legal troubles. The industrialist in his affidavit to the Supreme Court on Thursday offered to deposit an additional Rs 2, 468 core, taking the total settlement offer to Rs 6,868 crore.

A consortium of 17 banks have been pressing charges in the court against Mallya for defaulting on a loan worth Rs 9,000 crore. The industrialist, who is also accused in several other cases, has increased the settlement amount to demonstrate his bona fide and that of his companies.

“Mallya said Rs 1,591 crore could be deposited upfront in the SC by selling off UB's shares in United Spirits (Rs 660 crore), Kingfisher Finvest shares in United Spirits (Rs 243 crore) and Kingfisher Airlines' shares in Airbus (Rs 688 crore). He said Rs 1,329 crore deposited in various cases before Karnataka HC could also be pledged,” reported Times Of India.

Mallya in his affidavit, further, argued that Kingfisher Airline was a genuine commercial business failure and denied that the loan advanced by the banks to the company were misused or he has amassed assets/properties in the name of his family members or relatives or friends with the intention to avoid recovery of alleged dues by the banks.

It said UB Group of companies and its associates had infused large sums of money in Kingfisher Airlines "by way of loans, equity participation, liquidation of securities offered to creditors/lenders of Kingfisher Airlines aggregating to Rs 6,107.53 crores, all of which has been lost or is incapable of recovery."

Mallya has readied a list of assets held by him and his family members in India and abroad, which is to be prouced in the apex court in a sealed cover. He has, meanwhile, sought the court not to disclose information about his family's overseas assets to banks.

He argued that he was an NRI since 1988 and the banks doesn't not have any right over information about his assets outside India.

"Overseas assets were not considered while granting loans," he said in his statement.

The court on April 7 had directed Mallya to disclose by April 21 the total assets owned by him and his family in India and abroad while seeking an indication from him when he will appear before it.

Legal trouble has been mounting on Mallya, who left for the United Kingdom on March 2 on his diplomatic passport as banks moved the court to prosecute him.

He is also part of a series of federal investigations on several criminal counts. While the loans issue is being investigated by the CBI on charges of criminal misappropriation, criminal conspiracy and under the Prevention of Corruption Act, the Serious Fraud Investigation Office is probing violations under the Companies Act and the ED under PMLA.

(With inputs from Agencies)

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