VIJAY MALLYA OFFERS TO SELL ASSETS FOR SETTLING DUES
Moves Karnataka HC for selling assets worth ~139 billion
Breaking his silence, fugitive liquor baron Vijay Mallya ( pictured) on Tuesday made his two-year-old letter to the Prime Minister public, saying he is making every effort to repay his outstanding debts. He even moved Karnataka High Court this month, seeking its permission to sell assets worth ~139 billion to settle his dues. This has come a week after the Enforcement Directorate moved a Mumbai court to declare Mallya as a fugitive offender and confiscate his assets worth ~125 billion. Mallya, in a 2,000-word statement, said he was still doing everything to resolve the issue, despite being made the ‘poster boy’ of bank default in India.
Vijay Mallya on Tuesday made a two-year-old letter to the prime minister public and said he was making efforts to repay debts and had even moved the Karnataka High Court this month, seeking permission to sell assets worth ~139 billion to settle dues.
This has come a week after the Enforcement Directorate moved a Mumbai court to declare Mallya a fugitive and confiscate his assets worth around ~125 billion.
In a 2,000-word statement, Mallya said he was doing everything in his power to resolve the issue, despite being made the ‘poster boy’ of bank default in India. “I have become the ‘poster boy’ of bank default and a lightning rod of public anger. I wrote letters to the prime minister and the finance minister on April 15, 2016, and am making these letters public to put things in the right perspective,” Mallya said, adding, he did not receive any response.
The 62-year old businessman fled the country in March 2016, and has been since living in London despite numerous summons from Indian courts and law enforcement agencies. He is currently contesting cases against the government’s moves to extradite him to the country.
According to the letter, UBHL and myself have filed an application before the Karnataka High Court on June 22, 2018, setting out available assets of around ~139 billion. We have requested the court’s permission to allow us to sell these assets under judicial supervision and repay creditors, including public sector banks as may be directed and determined by the court.
However, given the tepid response to Kingfisher’s assets sale on previous occasions, market watchers are not much enthused. “We have to see how this whole thing evolves. It can be one more delaying tactic on part of the said party. Bankers may not be too enthused by this move since Mallya had earlier said he would settle his dues at a price and unfortunately that price was never arrived between the company and creditors,” an analyst said.
After the grounding of Kingfisher Airlines, a consortium of 17 banks led by State Bank of India, had a difficult time in selling the assets of the erstwhile airline. While Mallya’s famed Kingfisher Villa in Goa was sold for ~730 million through a negotiated deal after three failed auctions, the airline’s headquarters in Mumbai is yet to see a buyer after five failed auctions.
Mallya claimed in his letter that his conduct did not amount to ‘wilful default’ as tagged by some lenders, since his settlement offers against outstanding loans were refused by the lenders twice. “The consortium of 17 banks had recovered over ~6 billion through sale of pledged assets and an amount of ~12.8 billion has been lying with the Karnataka High Court since 2013,” Mallya said.
Mallya owes more than ~90 billion to the lenders, mostly public sector banks, and has recently been accused of money laundering of ~99.90 billion by the Enforcement Directorate (ED).