Pending loans: Vijay Mallya offers to pay Rs 4,000 crore to banks by September
The Supreme Court has asked the banks to respond to his proposal within a week.
Former chairman of United Spirits Vijay Mallya on Wednesday submitted a proposal to the Supreme Court saying he would pay Rs 4,000 crore to the banks he had taken loans from by September. Mallya owes around Rs 7,000 crore to 17 banks in India. The apex court ordered banks to respond to the former liquor baron’s proposal in a week’s time.
Mallya had left the country earlier in the month after stepping down as chairman of United Spirits when the banks started protesting loudly against him defaulting on payments. He was called in for questioning by the Enforcement Directorate in connection with the money he owes the banks. Mallya has maintained that he did not flee the country, but that he travels extensively for his work. He is reportedly still in the United Kingdom.
Earlier, HDFC bank put United Spirits stock on the market in an attempt to begin clearing his outstanding debt. Banks have also called for bids on Kingfisher Airlines property in Mumbai, and plan to sell Mallya’s residence in Goa.