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Bad loans: Vijay Mallya may offer Rs 6,000 crore as revised settlement to banks

New Delhi: Beleaguered industrialist Vijay Mallya who is faced with the threat of having his passport revoked, may make a revised settlement offer of Rs. 6000 crore to the banks against the due he owes
India TV Business Desk April 14, 2016 16:34 IST
India TV Business Desk

New Delhi: Beleaguered industrialist Vijay Mallya who is faced with the threat of having his passport revoked, may make a revised settlement offer of Rs. 6000 crore to the banks against the due he owes to them.

An SBI-led consortium of banks have been trying to recover over Rs 9,000 crore loans taken by Mallya for Kingfisher Airlines. The last offer of Rs 4,000 crore (in instalments) to banks by Mallya was rejected.

According to an ET report, lenders want an upfront payment of the principal amount, which is Rs 4,900 crore immediately, and the interest in instalments.

Earlier, the Enforcement Directorate (ED) said that it would cancel Mallya's passport after he failed to attend to the summons issued to him for the third consecutive time.

Also read: Trouble mounts for defiant Mallya, ED seeks revocation of his passport

ED has already summoned Mallya thrice – on March 18, April 2 and April 9. Though Mallya has sought time for appearance till May-end, ED is no mood to relent and now want Mallya’s passport cancelled. According to sources, India’s Ministry of External Affairs has already received a communication and this regard and further action may soon follow. The passport, if revoked, would force the UK, where Mallya is believed to be currently, to deport him back to India.  

Also read: Vijay Mallya effect? Directors at over 1k listed cos linked to wilful defaulters

Last week, the Supreme Court had asked Mallya to disclose his assets after previous settlement offers were rejected by banks. The businessman is to reply by April 21 and by April 25, and then the banks will respond to his offer. The next SC hearing is scheduled for April 26.

Previously, Mallya has already offered to pay Rs 2,000 crore upfront and a similar amount by September. He also said that another instalment of Rs 2,000 crore will be paid, which will depend upon the outcome of Kingfisher Airlines’ case against an aircraft engine company.