Published On : Thu, Apr 7th, 2016

Vijay Mallya Offer Rejected, Banks call it unacceptable

Mumbai/Nagpur: A group of Indian banks has rejected business tycoon Vijay Mallya and Kingfisher Airlines’ offer to repay Rs 4,000 crore by September, 2016. Vijay Mallya had been negotiating the deal with a consortium of 17 banks through video conferencing.

The repayment offer in the Supreme Court was submitted by Mallya, Kingfisher Airlines, United Breweries Holdings and Kingfisher Finvest India. But the banks told the court on Thursday that the offer was unacceptable.

Vijay Mallya had been negotiating the deal with a consortium of 17 banks through video conferencing.

Mallya and Kingfisher Airlines owe Rs 9,000 crore to the consortium whose leader SBI had an exposure of over Rs 1,600 crore to the now defunct airline.

Of the total amount, the banks have so far recovered only around Rs 1,240 crore by selling pledged shares and other collaterals. The lenders have another Rs 1,250 crore to gain but the amount is blocked due to various court stays.

In 2015, SBI declared Mallya as “wilful defaulter” for failing to repay the dues. Punjab National Bank also declared him, group holding company United Breweries Holdings and Kingfisher Airlines wilful defaulters in March.

Mallya, once known as the “King of Good Times”, left India on March 2 as Kingfisher’s creditor banks stepped up pressure on him. His whereabouts since then have not been disclosed.