Mallya says ready to talk to banks for one-time settlement

Former liquor baron Vijay Mallya, whose now defunct Kingfisher Airlines owes over Rs 9,000 crore to banks, said he is ready to talk to lenders for a one-time settlement of the loan default.

Mallya moved to London on March 2, 2016, days before banks moved the Supreme Court to take action against him. He has not returned to the country since.

In a series of tweets early on Friday, Mallya said he was ready for a settlement with the lenders, but also questioned them for not giving him a chance for a one-time settlement, while it was given to many others.

“Public sector banks have policies for one-time settlements. Hundreds of borrowers have settled. Why should this be denied to us?” he asked.

On Thursday, the Supreme Court had questioned Mallya whether he had truthfully disclosed all his assets and the transfer of $40 million to his children. The court has reserved its orders on the lenders' plea seeking contempt action against Mallya for willfully breaching court orders.

A consortium of lenders led by State Bank of India wants to recover $40-million payout that Mallya received upfront out of a $75-million severance package from the world's largest spirits maker Diageo Plc last year, after he had resigned as the chairman of whisky-maker United Spirits. Once a Mallya-owned firm, United Spirits is now majority owned by Diageo. 

Mallya had said in an earlier affidavit that the money had been transferred to his three children.

He had offered to pay Rs 4,000 crore, less than half the amount Kingfisher Airlines owes to banks, for a one-time settlement, in 2016, but that offer had been rejected by banks. 

Mallya said on Friday their substantial offer before the Supreme Court was rejected by banks without consideration.

“Am ready to talk settlement on fair basis,” he further added.

Mallya says he has “humbly obeyed every single court order without exception” and wishes the Supreme Court would intervene and “direct banks and us to negotiate and settle. We are ready." 

Last month, Indian government handed over a formal request to the UK to deport Vijay Mallya so that he can face trial in India.