SC issues notice to Vijay Mallya on banks’ plea

Court also extends time for the debt recovery tribunal to complete hearings in the Vijay Mallya loan default case


File photo. On 7 April, Mallya had been directed by the court to disclose all assets held by him and his family, after a consortium of creditors spurned his offer to repay <span class='WebRupee'>Rs.</span>4,000 crore to settle the debts of his grounded Kingfisher Airlines. Photo: Hemant Mishra/Mint
File photo. On 7 April, Mallya had been directed by the court to disclose all assets held by him and his family, after a consortium of creditors spurned his offer to repay Rs.4,000 crore to settle the debts of his grounded Kingfisher Airlines. Photo: Hemant Mishra/Mint

New Delhi: The Supreme Court on Monday issued a notice to UB Group chairman Vijay Mallya on a contempt petition brought by a consortium of banks for non-disclosure of assets.

A bench comprising justices Kurian Joseph and Rohinton F. Nariman also extended time for the debt recovery tribunal to complete hearings in the loan default case.

On 7 April, Mallya had been directed by the court to disclose all assets held by him and his family, after a consortium of creditors spurned his offer to repay Rs.4,000 crore to settle the debts of his grounded Kingfisher Airlines Ltd.

These would include all the movable, immovable, tangible and intangible assets owned by him, his wife and children.

The directive came after a consortium of 17 banks led by State Bank of India, which are owed a combined Rs.9,091 crore by Kingfisher Airlines, informed the court that they had unanimously rejected Mallya’s offer but were willing to join negotiations for a settlement.

The banks also demanded that Mallya deposit a substantial amount upfront for any dialogue to commence.

On 30 March, Mallya offered to pay Rs.4,000 crore upfront by end-September and an additional Rs.2,000 crore if he wins a lawsuit filed against a plane engine maker. The debt settlement offer was unanimously rejected by the consortium of banks.

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