Vijay Mallya says he is ready to talk to banks for one-time settlement of loans

Vijay Mallya appeals to the Supreme Court to intervene in helping him revive his one-time settlement offer to a consortium of banks


Vijay Mallya left for the UK in March 2016 after lenders and investigative authorities started to close in on him over unpaid dues of over Rs9,000 crore to a consortium of banks as well as allegations of money laundering and fund diversion charges. Photo: Hindustan Times
Vijay Mallya left for the UK in March 2016 after lenders and investigative authorities started to close in on him over unpaid dues of over Rs9,000 crore to a consortium of banks as well as allegations of money laundering and fund diversion charges. Photo: Hindustan Times

Bengaluru: Businessman Vijay Mallya has appealed to the Supreme Court to help revive his attempt to reach a one-time settlement with creditors owed in excess of Rs9,000 crore by his defunct Kingfisher Airlines Ltd.

“Wish the Hon’ble Supreme Court would intervene and put an end to all this (litigation) by directing Banks and us to negotiate and settle. We are ready,” Mallya said on Twitter on Friday.

In April 2016, lenders led by State Bank of India rejected Mallya’s offer of Rs4,000 crore in a one-time settlement.

“Our substantial offer before the Hon’ble Supreme Court was rejected by Banks without consideration. Am ready to talk settlement on fair basis,” Mallya tweeted.

Mallya left for the UK in March 2016 as lenders and investigating agencies closed in on him following his $75 million sweetheart deal with Diageo Plc. to quit as chairman of United Spirits Ltd.

“Public sector banks have policies for one-time Settlements. Hundreds of borrowers have settled. Why should this be denied to us,” Mallya wrote in another tweet on Friday.

On Thursday, Mallya, through his lawyer, told the apex court that he was being made the “poster boy of loan defaulters in India”.

In his series of tweets, Mallya also accused the government and Mukul Rohatgi, attorney general of India, of denying him a fair trial.

“I have humbly obeyed every single Court Order without exception. Seems as if Government is bent upon holding me guilty without fair trial,” he tweeted.

In another development on Friday, the Karnataka high court issued a bailable arrest warrant for Mallya in a 2014 civil contempt case (CCC) for violating an oral undertaking given before the Bengaluru debt recovery tribunal (DRT) not to pledge equity shares in United Breweries Holdings Ltd.

A division bench in the high court set bail at Rs50 lakh and directed the ministry of external affairs (MEA) to execute it, according to two people directly involved in the case.

MEA officials said they hadn’t received any information on Friday’s court order yet.

A senior official said the ministry had already taken up Mallya’s extradition case with UK authorities.

In the Lok Sabha on Friday, finance minister Arun Jaitley said the government is examining whether a new law would be required or prevailing statutes will have to be amended to confiscate the properties of defaulters who flee and hide in other countries.

Also Read| Supreme Court asks Vijay Mallya whether he truthfully disclosed assets

On Thursday, Rohtagi had submitted that an order from the Supreme Court would help bring back Mallya to face the law, Mint reported.

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