Vijay Mallya row: SC puts April 21st as deadline

April 07, 2016 15:08
Vijay Mallya row: SC puts April 21st as deadline

The Supreme Court orders Vijay Mallya to declare all his assets by April 21st and also inform, when he can appear before the court.

Mallya, who owes over Rs. 9000 crores to as many as 17 banks, was told by the court, to deposit a 'substantial amount' with it to 'prove his bonafide'.

April 21 st is also when Mallya has to tell court how much he can deposit with it.  The next court hearing is set for April 26th.

On the other hand, Mallya's counsel today, did not rule out the liquor baron's return to India, but said that there are ‘some problems' with his returning home,  and said that, he would inform the court, about his return by April 22nd.

The Supreme Court asked Mallya to disclose all his properties in India and foreign countries.

SBI rejected Vijay Mallya’s proposal to pay back Rs 4,000 crores by September 30th. SBI said that, there is "no value in the offer".

On March 31st, Mallya and his firms had said that, they were ready to pay Rs 2,000 crore upfront and over Rs 2,000 crore by September 30th and placed a proposal in a sealed envelop before the court. The bench had asked the SBI to give its response on it by April 7th.

Along with Rs. 4000 crores promised by September 30th, Mallya also said that, he was willing to assign gains from a $236 million lawsuit Kingfisher Airlines had filed in Bengaluru in 2013 against aircraft engine-maker International Aero Engines (IAE) for allegedly supplying "inherently defective" engines for its fleet of A-320 aircraft that led to grounding of its 14 aircraft and consequential losses.

SBI with Rs. 1600 crore, has the highest exposure to Kingfisher Airlines. Along with SBI, other banks involved are PNB and IDBI Bank (Rs 800 crore each), Central Bank of India (Rs 410 crore), Bank of Baroda (Rs 550 crore), Bank of India (Rs 650 crore). UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), IOB (Rs. 140 crore), Federal Bank (Rs. 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).

As part of the recovery process, the SBI-led bank consortium has decided to auction Kingfisher House in Mumbai.

The consortium of banks had told SC they had "advanced to KFA loans of thousands of crores of rupees. By way of a Master Debt Recast Agreement (MDRA) of December 21, 2010, and other related documents, the existing lands were restructured and treated as a single facility. United Breweries and Vijay Mallya have on December 21, 2010, executed both corporate guarantee and personal guarantee promising repayment of the entire amount due to the banks".

The banks responding to the issue, had said that, during the pendency of proceedings in DRT for recovery of over Rs 6,203 crore from Mallya and his companies, he stayed away from disclosing his assets.

"Instead, Kingfisher Airlines, UB, Mallya and Kingfisher Finvest tried to secretly dispose of their assets with an intention to defeat the recovery proceedings pending before the DRT," the consortium had said in its petition.

By Phani Ch

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Vijay Mallya  Supreme Court  India news