The hearing over the loan default case of liquor baron Vijay Mallya will continue in the Supreme Court on Thursday, as the State Bank of India (SBI)-led consortium of banks have filed a plea seeking recovery of the loan amount worth to the tune of Rs 9,000 crores approximately given to the businessman. In the last hearing on March 3, the banks conveyed to the apex court that Mallya did not deliberately disclose receipt of 40 million US dollars from a British company in the form of sale proceedings, as he had transferred the amount to trusts set up for his three children.
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The consortium also pleaded to the court to ensure that Mallya successfully deposits the money, adding that if he fails to do so, then the court should direct him to make a personal appearance. The banks had given loans to Mallya’s companies—the now-defunct Kingfisher Airlines, United Breweries and Kingfisher Finvest (India) Ltd.
On January 11, the apex court granted three weeks time to Mallya to file a reply to the consortium of banks who sought deposit of the amount of 40 million dollars. The consortium of banks had earlier approached the apex court seeking its intervention in bringing back Mallya to India and also repayment of money which the beleaguered businessman, who has absconded to England, had taken.
The banks, in their plea, told the court that there was an outstanding loan of almost Rs. 9,000 crore against the businessman. The banks have argued that the business tycoon has not been candid with the court regarding his assets, citing the failure to disclose the severance package he received from Diageo Plc as part of his exit from United Spirits Ltd.
On April 26, the apex court had directed Mallya to disclose his assets to the consortium. The banks also said the disclosures made by Mallya on his Indian and overseas properties were “vague”.
The banks also refuted Mallya’s allegation that all 17 banks did not reject the three proposals made by him for repayment of over Rs. 9,000 odd crore in installments.