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Vijay Mallya Ready to Pay Rs.4000 Crore to Settle Case

Bangalore-based Vijay Mallya has finally made an offer to provide Rs.4,000 crore to settle the case against Kingfisher Airlines and close it once for all but at half the price, which means the banks have to take a loss of Rs,5000 crore on their books.

On Wednesday afternoon, he made the offer in a sealed cover given to SC by Kingfisher Airlines, and the time span was until September this year. Vijay Mallya owes nearly Rs 9,000 crore.

Earlier, he made an offer of Rs.2,000 crore but that was turned down by the consortium of banks led by State Bank of India (SBI). In turn, Kingfisher Airlines (KAL), was declared a wilful defaulter by multiple banks.

Even the Enforcement Directorate has initiated an investigation and has summoned Mallya, who is currently in London, to appear before the investigative agency by April 2.

Banks have failed to auction Kingfisher Airline’s corporate office in Mumbai recently as no one came forward to buy the jinxed office building, with a base price far above than anybody could imagine.

With all the recovery initiatives under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002 proving more of legal hurdles than expected, the banks are trying to get possession of is Kingfisher Villa in Goa, which too proved futile.

In 2013, the I-T department asked a Bangalore court to settle the dues of the department amounting to Rs 350 crore from the Bangalore property as KAL had deducted tax at source from employees’ salaries and other payments but had failed to deposit the amount with the government.

[tags, vijay mallay offer, banks, ed, goa house, settlement offer]

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