Vijay Mallya says keen on paying up dues, but Rs 9000 default figure artificially inflated

Vijay Mallya, who is under severe pressure from the Indian investigating agencies and banks regarding huge loan default, says that he wishes to settle the loan money he took from Indian banks, but claims that the so-called Rs 9000 crore alleged default is an inflated figure.

Last Updated: Apr 29, 2016, 10:52 AM IST
Vijay Mallya says keen on paying up dues, but Rs 9000 default figure artificially inflated

Zee Media Bureau

New Delhi: Vijay Mallya, who is under severe pressure from Indian investigating agencies and banks regarding large-scale non payment of dues says that he wishes to settle the loan money he took from Indian banks, but claims that the so-called Rs 9000 crore alleged default is an inflated figure.

Talking to Financial Times in Mayfair, central London, the business tycoon claims that the actual principal that Kingfisher borrowed was around Rs 4800 crore. The interest on the principal amount till 2013, when the banks began expediting the loan recovery process, was around Rs 1170 crore. “It is grossly unjust to apply compound interest and artificially inflate this figure,” the paper quoted Mallya.

Once hailed as the King of Good Times, Mallya added that the Rs 4000 crore one -time settlement he offered to banks was “way, way in excess of the World Bank average for settlement of bad debts”, paper quoted Mallya.

Mallya is reported to have said that in earlier incidents, banks have sold non-performing loans to asset reconstruction companies for mere 30-40 percent of the book value.

The businessman has already offered to pay Rs 6,000 crore in staggered payments to banks, which the lenders have rejected outright.

The liquor tycoon added that he wishs to settle the loan default, but by revoking his passport or arresting him, the banks will not be able to recover their dues. He has no plans to leave the UK where he is staying in a “forced exile”.