Vijay Mallya loan settlement case: Banks seek govt cover to clinch deal

Zee Media Bureau

New Delhi: Banks in India have expressed their willingness to settle the loan deal with absconding liquor baron Vijay Mallya provided there is a government cover to it, as per a news daily report.

The Times of India reported that banks are ready to settle the loan amount offered by Mallya if there is an assurance by the government, something that wouldn't fetch the ire of the Comptroller & Auditor General (CAG), Central Vigilance Commission (CVC)or the Central Bureau of Investigation (CBI) later.

Mallya had offered to deposit Rs 6,868 crore to the Supreme Court, but the proposal was rejected by lenders.

Mallya promoted companies, including the now defunct Kingfisher Airlines owe over Rs 9,000 crores to a consortium of 17 banks led by the SBI.

 Mallya, whose passport was revoked this month, said he wants a "reasonable" settlement with creditor banks for his defunct airline, but they "are not getting any money" by taking his passport or arresting him.

The loans to companies promoted by Mallya were sanctioned in 2004 to 2007 and those turned into bad loans in 2009.

Mallya had left India on March 2, days before the Supreme Court heard a plea of clutch of state-owned banks seeking recovery of over Rs 9,000 crore from his group firms.