Vijay Mallya seeks to sell $2 billion in assets to settle bank dues

Vijay Mallya and United Breweries have filed an application before a Karnataka court seeking permission to repay creditors from the proceeds of the asset sale

Devidutta Tripathy, Reuters
Updated26 Jun 2018, 08:13 PM IST
Vijay Mallya selling assets is seen as a fresh attempt to settle bank dues owed by his now-defunct Kingfisher Airlines. Photo: PTI
Vijay Mallya selling assets is seen as a fresh attempt to settle bank dues owed by his now-defunct Kingfisher Airlines. Photo: PTI

Mumbai: Businessman Vijay Mallya, who is being pursued by Indian authorities over unpaid loans tied to his defunct Kingfisher Airlines Ltd, said on Tuesday he was trying to sell assets worth about 13,900 crore ($2.04 billion) to repay creditors. India has asked Britain to extradite Mallya to face trial after the liquor and aviation tycoon fled there in March 2016.

Mallya said in a statement he and his United Breweries Holdings Ltd filed an application on 22 June before a regional high court in India seeking permission to sell the assets that are under judicial supervision. The Enforcement Directorate, which fights financial crimes, also filed an application on the same day seeking to declare Mallya a “fugitive economic offender” and sought to confiscate 12,500 worth of his assets.

Mallya, who denies the charges against him, said any objection by the Enforcement Directorate or Central Bureau of Investigation (CBI) to his proposals to sell assets “will clearly demonstrate that there is an agenda against me beyond recovery of dues to public sector banks”.

“All my efforts are either ignored or misunderstood,” Mallya said in a statement.

The Karnataka high court has yet to give a verdict on Mallya’s request to sell assets.

Kingfisher Airlines, which stopped flying in October 2012, owed banks about 9,000 crore when Mallya left India more than two years ago. Since then, the Indian financial authorities have increased their crackdown on record levels of bad loans at lenders, especially at state-run banks which account for the bulk of the soured assets.

Lawyers for Mallya, who co-owns the Force India Formula One team, have opposed his extradition to India saying the case against him was politically motivated.

“I have become the ‘Poster Boy’ of bank default and a lightning rod of public anger,” Mallya said in his statement.

India has dismissed charges that its pursuit of Mallya is driven by politics, with its lawyer at an extradition hearing at a London court accusing Mallya of never intending to repay the money borrowed by Kingfisher.

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First Published:26 Jun 2018, 08:13 PM IST
HomeCompaniesNewsVijay Mallya seeks to sell $2 billion in assets to settle bank dues

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