Vijay Mallya's Rs 4,000 crore repayment offer rejected by banks

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New Delhi, April 7: The offer to repay Rs 4,000 crore made by former UB group chairman, Vijay Mallya has been rejected by the banks. Mallya's counsel told the court that he would need two weeks time to come up with a fresh proposal and inform about a substantiate amount that could be paid. 

Read more: How did Vijay Mallya leave the country

The court during the course of the hearing directed Mallya to disclose his assets and also those belonging to his wife and children.

Vijay Mallya's offer rejected by banks

He has been given time till April 21 to do so. However Mallya through his lawyer informed the court that he had no liquidated assets to pay in cash. Everything has been invested in the markets he also told the Supreme Court. Mallya's presence in the court is necessary to give us confidence about his bonafide and assurances, the banks also submitted.

The decision to reject the offer was taken after the banks held a meeting on April 2 where the proposal by Mallya was discussed. The banks said that they had also received a modified proposal from Mallya, but the same was also rejected.

He should negotiate with the banks directly, they also told the Supreme Court today. Further the banks also submitted if there has to be a negotiation, then a substantial amount should be paid by Mallya first.

On the last date of hearing, Mallya had offered to pay Rs 4,000 crore to the banks by September 2016. However the banks felt that he was not paying up the entire amount which is around 8,000 crore and hence sought time of two weeks to come up with a fresh proposal.

A consortium of the banks had moved the Supreme Court seeking a directive to prevent Mallya from leaving the country. They said that he owed them money and hence should be barred from leaving the country.

However by the time the petition had come up during an earlier date the Supreme Court was informed that he had already left the country. Mallya submitted that he was not in the country. The atmosphere is surcharged and hence he did not want to come to India at this moment he also said.

Further he also came down heavily on the media for vitiating the atmosphere and said that he was being subject to a media trial. The Bench however observed that the media was acting in public interest. They only want you to repay the banks the bench observed. Mallys however said that he would make arrangements to repay Rs 4,000 crore by September 2016.

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