Banks: Non-disclosure of assets shows Mallya lacks bona fide

Industrialist Vijay Mallya's refusal to give details of his overseas assets shows his lack of "bonafide" when it comes to paying back the loans, banks submitted before the Supreme Court.

An affidavit filed by banks contends that Mallya has failed to comply with the orders of the apex court, which had asked him to disclose all his assets in India and abroad. The apex court is currently hearing a petition arising out of Kingfisher Airline's 90-bln-rupee default. The plea filed by 17 banks led by the State Bank of India originally sought to restrain Mallya from leaving the country. Last week, Mallya had filed an affidavit saying he is under no obligation to disclose his overseas assets to the banks and that he is willing to give a list of assets in a sealed cover to the apex court.

Mallya had said a list of his overseas assets is not necessary as the loans were not granted considering those assets. According to the banks, discloser of assets by Mallya, his wife and children in US is very significant to recover loans and nondisclosure will restrain banks from ascertaining his ability to pay the loans.

The bench of Justice Kurian Joseph and Justice Rohinton Nariman will hear the case next on Tuesday.

Earlier a Rs 44-bln settlement offer by Mallya was rejected by banks.

Apart from SBI, other banks in the consortium are Axis Bank, Bank of Baroda, Federal Bank, Corporation Bank, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab and Sind Bank, Punjab National Bank and State Bank of Mysore. -Cogencis