On Wednesday, 30th March, Kingfisher Airlines chairman Vijay Mallya, through a sealed envelope to the Supreme Court, offered to repay Rs 4,000 crore to his debtor banks, by September. Mallya also said that he does not wish or intend to come home yet, due to a “surcharged atmosphere” against him, fuelled by media reports!

repay offered by vijay mallya
Picture Source repay offered by vijay mallya

A bench comprising of Justice Kurian Joseph and Justice R. F. Nariman allotted the consortium of banks a week’s time to respond to the offer, posting the matter for further hearing on April 7th. Mallya had earlier offered to pay Rs 2,000 crore to settle all his debts. However, the consortium, led by The State Bank of India had turned down the offer, saying,

We cannot accept such a small amount and have rejected the proposal.

Kingfisher Airlines (KFA), now declared a wilful defaulter by multiple banks, owes lenders Rs 6,963 crore, while Mr. Mallya, in total, owes over Rs. 9000 crore to the consortium.

repay offered by vijay mallya

Picture Source repay offered by vijay mallya

The latest proposal was a result of negotiations held through video conferences with the businessman, who is still abroad, in London, as late as yesterday. When Justice Kurian asked whether Mr. Mallya is back in India or not, Mallya’s senior advocate, C.S. Vaidyanathan had said,

No. Media has vitiated the atmosphere. The atmosphere is so surcharged against him… There are cases in which media created such a surcharged atmosphere that even beatings have taken place… the less said the better.

Justice Kurian had shot back, saying, repay offered by vijay mallya

Media ultimately stands for the public interest. They just want the money taken from the banks to be brought back.

While the bankers have been making all efforts possible to recover their money despite facing some legal hurdles, the Enforcement Directorate has started an investigation into Mallya’s financial affairs, on suspicions of fraud and misappropriation of funds.

repay offered by vijay mallya

Picture Source repay offered by vijay mallya
The ED has also summoned Mallya to appear before it, and the liquor baron, currently still in London, is expected to appear before the investigative agency by April 2nd.

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