Vijay Mallya submits Rs 4,000 crore repayment plan to Supreme Court

Zee Media Bureau

New Delhi: Liquor baron Vijay Mallya on Wednesday submitted Rs 4,000 crore repayment plan to Supreme court. Mallya also told the SC that he had two rounds of video conferencing with banks adding that he will repay the amount by September 2016.

SC has allowed the consortium of banks to respond within a week's time to the proposal and posted the matter for hearing on April 7.

Meanwhile the banks have told the apex court that they need time to look at Mallya's repayment proposal.

Vijay Mallya's Counsel said negotiations with banks are on but media is exaggerating the issue, therefore proposal should be kept sealed. Justice Kurien, however, observed 'media ultimately stands for public interest'.

In a stern warning to wilful defaulters like Vijay Mallya, Finance Minister Arun Jaitley couple of days ago said they should settle their dues honourably with the banks or else be ready to face "coercive action" by lenders and investigative agencies.

He further said that banks have certain collaterals of group companies of Vijay Mallya and will take legal action to recover dues that are in excess of Rs 9,000 crore.

Mallya, promoter of long-grounded Kingfisher Airlines, had left India on March 2, presumably for London, days before the Supreme Court heard a plea of clutch of state-owned banks seeking recovery from his group firms.

Mallya and Kingfisher Airlines owed Rs 7,800 crore to a consortium of 17 lenders led by State Bank, which had an exposure of over Rs 1,600 crore to the now defunct airline.

Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).

UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).