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Vijay Mallaya’s Proposal rejected by Bank.SC orders to declare all Assets

Vijay Mallaya’s Proposal rejected by Bank.SC orders to declare all Assets

A consortium of banks on Thursday rejected businessman Vijay Mallya’s offer to repay Rs 4,000 crore , less than half of what his defunct Kingfisher Airlines owes them.vm3

A consortium of banks led by State Bank of India on Thursday rejected the proposal in the current form offered by liquor baron Vijay Mallya and his companies to pay Rs 4,000 crore by September towards settlement of his loan before the Supreme Court, which directed him to disclose his total assets by April 21.

The consortium also asked the Supreme Court that directions be passed to ensure presence of Mallya in the country to show his bona fides that he was serious about settling his dues.

A bench comprising Justices Kurian Joseph and RF Nariman asked Mallya and his companies to file their response by April 21 indicating how much amount they can deposit in the Supreme Court to prove their bonafides.

After a brief hearing of 20 minutes, the bench posted the matter for further hearing on April 26.

At the outset, the consortium of banks told the apex court that it is not averse to the settlement but Mallya has to show his bona fides by being present in the country.

“Vijay Mallya has to prove his bonafides by presenting himself for suitable negotiation and presenting a contingency plan that he is getting money from X and Y and then he will pay to the banks,” senior advocate Shyam Divan, appearing for the consortium of banks, said.

“For suitable negotiations, he should be present and should declare all his movable, immovable, tangible and intangible assets in both in India and abroad,” he said.

Divan said that the proposal given by Mallya in the present form has been rejected and it was conveyed to him after which he made a second offer last evening which is under consideration.

He said that for suitable negotiation Mallya needs to be in the country and before the court so that it is known what he plans to do and how.

Senior advocate CS Vaidyanathan, appearing for Mallya, said they have got the response from the consortium of banks after which they have replied to it last evening.

Vaidyanathan said he needs some time to seek further instructions on the decision taken by the consortium of banks.

The consortium of banks agreed to his submission after which the bench asked Mallya to file his response by April 21.

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