Vijay Mallya, founder-owner of Kingfisher Airlines, Wednesday submitted a proposal in the Supreme Court, offering to repay Rs 4000 crore of loan to the public sector banks (PSBs) by September this year. According to the SBI-led consortium of banks, Mallya’s total outstanding is over Rs 9000 crore.
The schedule of repayment was adduced before a bench of Justices Kurian Joseph and Rohinton F Nariman, which asked the banks to go through it and respond within a week. While fixing the matter for hearing next on April 7, the bench told the banks: “If you want to reject it (proposal), reject it…do whatever you want. Just tell us in a week what is your decision.”
During the brief hearing, the bench also asked Mallya’s counsel whether he has come back to India. “No, he has not come back. He is not needed in this world right now,” retorted the counsel.
Mallya’s lawyer also requested the court not to make the repayment plan public, complaining that the media has vitiated the atmosphere. But the bench replied: “Media is doing its work. It is working in public interest. All they want is that the money is returned.”
Meanwhile, the consortium’s lawyer submitted that Mallya should return to India and that his presence would facilitate finalizing the repayment schedule.
On March 10, the bench had questioned the PSBs over advancing loans to Mallya and his companies without securing enough assets in guarantee. It had also issued a notice to Mallya who flew out of India on March 2, the day the banks sought the impounding of his passport as part of loan recovery proceedings.