NO INTENTION TO ABSCOND, TRYING TO SETTLE WITH BANKS, SAYS MALLYA

BENGALURU: Finally breaking his silence, Vijay Mallya, chairman, United Breweries Holdings Ltd (UBHL), said in a late evening media statement on Sunday that he had no intention of absconding from the country, and that he has been trying to reach a one-time settlement with the consortium of 17 banks to which Kingfisher Airlines owes over ` 7,000 crore.

This is the first statement from Mallya since February 25, when he announced a $75-million (`515crore) settlement with UK-based Diageo Plc to exit United Spirits Ltd (USL). Diageo has a controlling interest in USL.

“My statement as to my personal future after quitting Diageo/ USL — that I want to spend more time in England closer to my children — has been grossly distorted and misportrayed,” he said in the statement. “I wish to reduce my business commitments gradually and devote more time to my family, and that my resignation from USL was a step in this direction.”

“I have been most pained as being painted as an absconder – I have neither the intention nor any reason to abscond. I have been a non-resident (NRI) for almost 28 years and the Reserve Bank of India has acknowledged this in writing. Over the years, I have built successful businesses in India and abroad. I am also honoured to be a member of the Rajya Sabha,” the statement said. Mallya claimed that a successful disinformation campaign has ensured “my becoming the poster boy of all bank NPAs” (non-performing assets) despite pledging blue chip securities and depositing significant amounts in court.

“A consortium of banks loaned funds to Kingfisher Airlines, a public company, but these loans were secured by blue chip securities,” the statement said. “After the closure of the airline, since April, 2013, the banks and their assignees have recovered, in cash, an aggregate of ` 1,244 crore from sale of pledged shares. In addition an aggregate of ` 600 crore is lying deposited in the Karnataka High Court (since July, 2013) and a further sum of ` 650 crore belonging to United Breweries Holdings has been deposited in the Karnataka High Court since early 2014, being sums realised from the sale proceeds received by United Breweries Holdings from the sale of shares in United Spirits to Diageo Plc in July, 2013.

“In fact, banks have NPAs of ` 11 lakh crore and have borrowers who owe much more than the amount allegedly owed by Kingfisher Airlines to the banks — a fact never alluded to or widely reported by the media as in my case,” he claimed.