SC asks Vijay Mallya to disclose assets as banks reject his settlement offer

NEW DELHI: The Supreme Court on Thursday directed Vijay Mallya to make a full disclosure of all assets after banks rejected his settlement offer as being inadequate and subject to too many conditions. The court also asked him to reveal the assets of his wife and children besides depositing a substantial amount in court to prove his bona fides.

Mallya had offered to pay Rs 4,000 crore and possibly an extra Rs 2,000 crore in his settlement offer. The banks are seeking more than Rs 9,000 crore in dues from loans given to Kingfisher Airlines, the carrier founded by Mallya and grounded since 2012.

A top court bench, comprising justices Kurian Joseph and RF Nariman, also sought a response from Mallya on when he would appear personally in court after the State Bank of India-led group of 17 lenders sought his presence in the country. Mallya left India in March for the UK.

Mallya's lawyers CS Vaidyanathan and Parag Tripathi said he would make a full disclosure of his assets. They opposed disclosing the assets of his wife and children but were directed to do so by April 21. They also said that Mallya was willing to deposit money, provided the court so directs.

“There's no liquid money. Everything is tied up in contingencies. We will need court orders to pay,” Vaidyanathan said. He also agreed to say when Mallya would appear court at the next hearing.

The banks said they were willing to hammer out a negotiated settlement if Mallya put a substantial sum of money on the table and was personally present for talks. The banks will reply to Mallya's response to the court's directions by April 25. The case will again be heard on April 26.

Separately, Mallya has been asked by the Enforcement Directorate to present himself on April 9 to answer questions over accusations of money laundering with regard to a Rs 900 crore loan from IDBI Bank.

Mallya has said that he’s not guilty of any wrongdoing. He’s also defended himself in the controversy over loan defaults, saying that he remains engaged in the process of arriving at a one-time settlement with banks. Mallya has also accused the media of running a “near-hysterical” campaign against him.