Business tycoon Vijay Mallya, chairman of Kingfisher Airlines, has submitted a repayment plan to the Supreme Court.
The liquor baron is said to have conducted two rounds of video conferencing with banks and has offered to pay Rs 4,000 crore by September 2016 to banks.
Liquor baron Vijay Mallya financialexpress
Mallya offered to pay Rs 2,000 crore upfront and remaining Rs 2,000 crore by September 31, 2016.
The consortium of lenders to Kingfisher Airlines, led by State Bank of India (SBI), told the apex court that they will need some time to study the proposal made by Mallya.
The court has given the lenders a week to respond and will hear the case on April 17.
The principal amount of the loan is believed to be over Rs 7,000 crore.
However, it is not sure whether Mallya intended to return to India from London or not.
Mallya has also accused media of running campaign against him while assuring to payback loans. On this, the SC bench observed that media is doing its job in public interest. Finance Minister Arun Jaitley, had earlier warned wilful defaulters to either pay up honourably or face coercive action. “I don’t want to make any comments on individual cases, but I think it’s a responsibility of large groups like his (Vijay Mallya’s) to honourably settle their dues with the banks.” “Banks have some securities. Banks plus other agencies have also coercive methods available with them through legal enforcement. These are all being investigated by relevant agencies,” Jaitley has said.
Echoing the thoughts, Prime Minister Narendra Modi had said that no defaulter would be spared. “You know how the rich have usurped public money. My government has tightened the screws on the bank defaulters. They are sweating due to fear of going to jail and are fleeing. But no one will be spared,” he said at a rally in Assam.
Mallya has been declared a wilful defaulter with dues over Rs 9,000 crore. Recently, lenders to the airline put the company’s trademarks and brands on auction to recover dues estimated at about Rs 6,963 crore in February 2014.