Wednesday, April 6, 2016

Banks reject Mallya’s Rs 4,000 crore offer

A consortium of 17 banks, led by State Bank of India, has rejected a proposal given by beleaguered liquor baron Vijay Mallya and his firms to pay back Rs 4,000 crore by September 30, saying that there is "no value in the offer" and is likely to plead the Supreme Court on Wednesday to pass direction against him.

Mallya and his firms on March 31 had told the apex court that they were ready to pay Rs 2,000 crore upfront and over Rs 2,000 crore by September 30 and placed a proposal in a sealed envelop before a bench of Justices Kurian Joseph and R F Nariman. The bench had asked the SBI to go through the proposal and respond by April 7 whether it was acceptable or not.

The proposal made by Mallya, UB Group, Kingfisher Airlines and Kingfisher Finvest, however, have failed to satisfy the banks and SBI has rejected it. Sources aware of the development said that SBI formally informed Mallya three days ago about its decision. The sources said that the bank would plead the court for refund of the entire loan amount of Rs 9,000 crore within a reasonable time.

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