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Repayment proposal rejected by banks: Mallya in pressure

repayment proposal

Another big push in Vijay Mallya case is that the consortium of banks have rejected two repayment proposal made by Mallya towards payment of dues totally worth Rs. 9000 crore out-and-out. Not only that,  but the Supreme Court as well ordered him to file an affirmation on oath disclosing all assets as on March 31, 2016 in India and abroad, not only in his name but also in those of his wife and children last Thursday. Mallya is been given the deadline April 21 to submit the details.

Banks’ say on repayment proposal

“These are large figures involved. We think it is reasonable to ask him to make a full, fair and final disclosure of his assets. He can throw contingencies at us for making these payments. He should make a substantial advance deposit and his presence is required so that negotiations can be done person to person. Senior bank officials will also be present in the court to have an effective solution,” Mr. Divan – appearing senior advocate from the banks’ side stated the banks’ position in the court.

Supreme Court considering repayment proposal

A Bench of Justices Kurian Joseph and Rohinton Nariman have agreed with the banks that Mallya’s presence in court is “necessary” for any indicative negotiations considering his repayment proposal to initiate. The Bench has also asked Mallya’s lawyers to get instructions from him and also pinpoint in the same affidavit when he would be present in the Court.

The Bench of Justices also agreed with banks with the “substantial amount” that Mr. Mallya should pay first  in advance to prove his legitimacy to the banks and the Court. The Bench then directed him to spell out in the April 21 affidavit the amount he is willing to pay for negotiations to start.

Though the Bench initially included not only Mr. Mallya and his wife and children but also his other “close relatives”, to affidavit disclosure of assets both in India and abroad, but the court modified its order to include only Mr. Mallya’s wife and children, besides him.

The court posted the hearing for April 26 while asking the banks to file their response on Mr. Mallya’s affidavit by April 25.

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