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Vijay Mallya revamps loan settlement offer to Rs 6,868 crore

India TV Business Desk 22 Apr 2016, 9:02:40 IST
India TV Business Desk

New Delhi: Facing a non-bailable arrest warrant, beleagured industrialist Vijay Mallya on Thursday revamped his loan settlement offer with an an additional Rs 2,468 crore over and above the earlier offer of Rs 4,400 crore.

Mallya's defense told the Supreme Court that he was prepared to deposit an additional Rs 2,468 crore over and above the earlier offer of Rs 4,400 crore against the demand of Rs 9,000 crore by a consortium of banks led by State Bank of India (SBI).

Remaining on Court's question about his return to India, Mallya attributed the high oil prices, excessive taxation and faulty aircraft engines for bankrupcy and the loss of Rs 6,107 crore to him, his family, UB group and Kingfisher Finvest.

Maintaining that he is neither a “wilful defaulter” nor has he absconded, Mallya informed the court that the total value of overseas assets owned by him and his immediate family is worth Rs 780 crore but the SBI-led consortium of banks have no right to access the details of these assets.

Mallya, however, said to demonstrate his bonafide and also that of his companies, an aggregate of Rs 1591 crores can be deposited before the apex court.

The affidavit further said that Kingfisher Airline was a genuine commercial business failure and denied that the loan advanced by the banks to the company were misused or "Mallya 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."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 about when he will appear before it.
It had asked Mallya, who owes over Rs 9,000 crore to around 17 banks, to deposit a "substantial amount" with it to "prove his bonafide" that he was "serious" about meaningful negotiations and settlement.