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Regular-article-logo Thursday, 19 June 2025

Vocal Mallya offers to repay dues

Fugitive liquor baron Vijay Mallya on Tuesday said he had become the "poster boy" of bank default and a lightning rod for public anger, while making yet another attempt to settle his dues with banks.

Our Special Correspondent Published 27.06.18, 12:00 AM

Mumbai: Fugitive liquor baron Vijay Mallya on Tuesday said he had become the "poster boy" of bank default and a lightning rod for public anger, while making yet another attempt to settle his dues with banks.

Speaking about the controversy surrounding him in the over Rs 9,000-crore Kingfisher Airlines loan default case, Mallya denied that he was a wilful defaulter.

The liquor baron, who is undergoing an extradition trial in a UK court, on Tuesday broke his silence through a five-page statement on the loan default committed by Kingfisher Airlines.

Mallya also made public letters he had written to Prime Minister Narendra Modi and finance minister Arun Jaitley on April 15, 2016, where he had explained the circumstances leading to the closure of the airline and had asked them to appoint an ombudsman or a committee to examine all the facts related to the default.

Mallya claimed he had not received any response from either of them.

According to Mallya, the consortium of 17 banks led by the State Bank of India (SBI) gave loans to KFA of around Rs 5,500 crore. Recoveries of over Rs 600 crore have since been made through the sale of pledged assets and another Rs 1,280 crore was deposited with the Karnataka High Court in 2013, totalling over Rs 1,880 crore.

He pointed out that two settlement offers were made to the banks when proceedings were filed by them in the Supreme Court on March 29, 2016 and April 6 that year, but both of them were rejected by the lenders.

The first offer was for payment of Rs 4,000 crore, which was subsequently revised to Rs 4,400 crore.

Mallya claimed that he had written letters to the chairperson of the SBI on May 10, 2016, June 2 and June 10, 2016 seeking settlement discussions.

He said he was "tired of this relentless pursuit by the government and its criminal agencies'' and that all of his efforts were either ignored or misunderstood.

Mallya went on to disclose that he and United Breweries Holding (the holding company of his group) had filed an application before the Karnataka high court on June 22, setting out available assets of around Rs 13,900 crore.

"We have requested the court's permission to allow us to sell these assets under judicial supervision and repay creditors, including the public sector banks such amounts as may be directed and determined by the court,'' he said.

The liquor baron alleged that the CBI and Enforcement Directorate had filed charge sheets against him "with various untenable and blatantly false allegations acting at the behest of the government and banks".

On payment of dues to the former employees of the airline, Mallya wants to use the interest accruing on deposits of Rs 1,280 crore made with the Karnataka High Court since 2013.

Citing reports of ED objecting to public sector banks' claim to the proceeds arising from the sale of his assets, Mallya said, "...this is a clear example of politically motivated abuse of power with no legal basis whatsoever and behoves the fundamental question of whether the government wants me to repay the public sector banks or not".

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