Vijay Mallya Proposes to Pay Rs 4000 Cr to Settle Rs 9000 Cr Debt

The SBI-led consortium has been given time till 7 April to respond to Mallya’s proposal

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Vijay Mallya has made a proposal before the Supreme Court offering Rs 4,000 crore as a settlement amount against an outstanding debt of Rs 9,000 crore that he owes the SBI-led consortium of banks.

Mallya’s proposal, read out by his lawyers in the Supreme Court, said that he will be able to make the payment by 30 September 2016. His counsel told the SC that negotiations are still on with the banks.

The apex court has given banks time till 7 April to respond to Mallya’s proposal which is also the next date of hearing in the case.

Lawyers representing the banks said that his presence in India would help.

When Mallya’s lawyers also complained about the tone of media coverage on the issue, the apex court observed that the media was reporting the story in “public interest.”

CBI Likely to Charge Mallya With ‘Cheating’

According to the sources in the CBI, loan funds were allegedly diverted by Mallya and the agency is likely to charge him with ‘cheating’. Since ‘cheating’ is a criminal offence, and the agency can arrest Mallya if deemed fit.

The CBI has already registered a case under Prevention of Corruption Act against Mallya, Kingfisher Airlines CFO Raghunathan and others for loan default. Recently, the agency expanded the investigation from Rs 900 crore to the entire Rs 9,000 crore bank debt.

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