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Banks reject Mallya's Rs 4000 crore loan repayment offer, SC seeks asset disclosure

New Delhi: The State Bank of India-led consortium of 17 banks have rejected beleagured industrialists Vijay Mallya's offer to repay Rs 4,000 crore, less than half of what his now grounded Kingfisher Airlines owes them.
India TV Business Desk April 07, 2016 11:52 IST
India TV Business Desk

New Delhi: The State Bank of India-led consortium of 17 banks have rejected beleagured industrialists Vijay Mallya's offer to repay Rs 4,000 crore, less than half of what his now grounded Kingfisher Airlines owes them.

The banks on Thursday informed the Supreme Court that Mallya and his company have revised initial offer but its still unacceptable and want entire Rs 9,000 cr repaid with interest.

The banks further added that it is absolutely necessary for Mallya to remain present for talks, and sought full disclosure on assets and shareholdings.

Meanwhile, the apex court has directed Mallya to declare all assets, including those of spouse and children untile next hearing on April 26.Mallya has until April 21 to file a response.

The court prima facie agreed with banks and asked Mallya’s lawyers to inform when he is coming back to India.

Earlier, there were reports that Banks were expecting a better offer from Mallya.

Vijay Mallya, 60, flew to London last month, and has refused so far to return for interrogation to Mumbai.  His lawyers say that he has spoken to his lenders via video conference, which means he is available and not absconding.  

In a statement issued last week, SBI had said, "the consortium of banks led by SBI confirms receipt of an offer for settlement of dues from Kingfisher Airlines Ltd. The bank along with other consortium members will examine the same."

The repayment offer in the Supreme Court was submitted by Mallya, Kingfisher Airlines, United Breweries Holdings and Kingfisher Finvest India.

Mallya and Kingfisher Airlines owe Rs 9,000 crore to the consortium whose leader SBI had an exposure of over Rs 1,600 crore to the now defunct airline.