Vijay Mallya had asked the media to keep his son away from this issue as his son Sidharth has nothing to do with his business and he also offered to reply the banks Rs. 4000 crores as a part of settlement deal of all the dues which he owes to the bank till date. Here are the details of how and from where Mr. Mallya is planning to arrange the huge amount of 4000 crores.
Since the time Vijay Mallya left the country Indian banks are trying all the ways to get him back to India and recover the dues from him, meanwhile, the media is hopping on his son creating more pressure on Mallya. It looks like finally Mallya has finally succumbed to the pressure and decided to come to the settlement with the banks.
According to the sources, Mallya had offered to pay the banks Rs. 4000 crore by the end of September. He apparently made this announcement via video conferencing with the bank officials. The source has also revealed that Vijay Mallya and Kingfisher Airlines Ltd on Wednesday submitted in a sealed cover a proposal for repayment of Rs 4000 crore to the consortium of banks, led by the State Bank of India, by September this year.
The proposal was supported by Kingfisher, UB holding, and Kingfisher Finvest along with Mallya himself. Mallya offered to pay Rs 2,000 crore upfront and remaining Rs 2,000 crore by September 30, 2016. Mallya’s offer was made in the Supreme Court by his counsel C S Vaidyanathan. But his counsel remained silent on the question of whether Mallya intended to return to India from London or not. The SC allowed the consortium of banks to respond within a week’s time to Mallya’s proposal and posted the matter for hearing on April 7.
Mallya also tried to blame the media by accusing them of running the campaign against him with the purpose but the supreme court had refuted his allegation saying that the media is doing their job in a public interest. The government counsel also brought to the notice of apex court that Mallya has left the country while he still owes the various bank Rs. 9000 crores. Acting swiftly on the arguments of the government counsel the apex court directed Mallya to respond within two weeks to the consortium of banks and in the absence of the same courts have been directed to freeze his passports.
The AG Mukul Rohatgi had brought the following points in front of the courts.
1) Vijay Mallya had been willingly avoiding to pay Rs. 9000 crores loan that is due to various banks in India.
2) There is a need for attachment of all his properties and money with the disclosure on behalf of Mallya.
3) Mallya needs to appear before the court in person and his passports need to freeze by the courts.
4) The AG had said that Mallya had assets abroad which are far excessive to loans secured by him here.
When the bench asked as on what basis the banks had granted the loans to Mallya, AG argued that the loans were granted keeping the brand value and fleet of aircraft in mind. The arguments between the banks and the courts are never ending and very long. Meanwhile, the banks also have the option of accepting the offer given by Mallya to them about the one-time settlement. Let’s wait and watch which side the wind blows now.