The banks had given loans to his grounded Kingfisher Airlines. The banks tell the apex court that for significant arbitration to obtain place, Mr Mallya wants to be present. “However the consortium is not against a negotiated settlement provided the respondent shows his bonafides for it”.
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Divan said that the proposal given by Mallya in the present form has been rejected and it was conveyed to him after which he made a second offer last evening which is under consideration. “Respondents lawyer prays for a short time to respond to the matter”. The counsel further said that Mallya had sought time to reply to banks’ rejection of his proposal till April 21.
The Service Tax Department has moved Bombay high court requesting that proceedings earlier initiated (on 11 March) against Mallya under the Code of Criminal Procedure be speeded up.
The banks wrote to Mallya that the offer can not have any contingencies and must be based on a full and fair disclosure of all assets of Mallya.
A senior SBI executive overseeing its stressed-assets management unit declined comment when asked about the banks’ decision.
At this juncture, Justice Nariman asked him to update the information.
The court agreed with the banks’ contention saying that Mallya should establish bonafide by depositing a token amount in court, disclose all assets and sought clarity from his counsel on when he can return to India and appear in court.
The consortium of banks had told SC they had “advanced to KFA loans of thousands of crores of rupees”.
The repayment offer in the Supreme Court was submitted by Mallya, Kingfisher Airlines, United Breweries Holdings and Kingfisher Finvest India.
The CBI had registered the FIR against Mallya. It is alleged that the loans were sanctioned in violation of norms regarding credit limits.
The consortium also appealed that the funds Mallya will receive from Diageo be kept in an escrow account till the liquor baron clears the dues.
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In 2015, SBI declared Mallya as “wilful defaulter” for failing to repay the dues. The association of the banks was led by the State Bank of India.
