SC orders Vijay Mallya’s overseas assets be made available to banks

Mangalore Today News Network

New Delhi,Apr 26, 2016 :The Supreme Court on Tuesday directed beleaguered liquor baron Vijay Mallya to disclose all the overseas assets held by him and his estranged wife and children to the banks which are seeking the recovery of more than Rs 9,000 crore loaned to his now-grounded Kingfisher Airlines.

Mallya had submitted the details of the overseas assets held by him and his estranged wife and children in a sealed cover to the court.

The direction came after the court noted the unwillingness of Mallya to return to India and personally appear before it.

The banks would act on the disclosures in accordance with law, the apex court bench of justice Kurian Joseph and justice Rohinton Fali Nariman said, directing the disclosure of the assets Mallya holds abroad.



The court also directed the Bengaluru-based debts recovery tribunal to dispose of the matter pending before it expeditiously, possibly within two months.

The court recorded the statement of senior counsel CA Vaidyanathan that these assets held by Mallya, his estranged wife and children were not covered under the personal guarantee given by Mallya to the banks to return the loans that the consortium of 13 banks, headed by the State Bank of India (SBI), to his now-grounded Kingfisher Airlines.

The court also recorded a submission by Attorney General Mukul Rohatgi, reserving his right to refute the submission made on behalf of Mallya.


The court also directed the Bengaluru-based debts recovery tribunal to dispose of the matter pending before it expeditiously, possibly within two months.

The court recorded the statement of senior counsel CA Vaidyanathan that these assets held by Mallya, his estranged wife and children were not covered under the personal guarantee given by Mallya to the banks to return the loans that the consortium of 13 banks, headed by the State Bank of India (SBI), to his now-grounded Kingfisher Airlines.

The court also recorded a submission by Attorney General Mukul Rohatgi, reserving his right to refute the submission made on behalf of Mallya.


“Circumstances created point to the fact that banks want Vijay Mallya to be in jail,” the businessman’s lawyer told the SC. “Under present circumstances, it’s difficult for him to return,” he said.

The SC was hearing a petition alleging that Mallya is not cooperating in the probe initiated against him, and has refrained from disclosing his foreign assets. A consortium of banks stated in a rejoinder to an affidavit filed by Mallya that disclosure of his foreign assets was significant for recovering its dues.
 Mallya flew to London on March 2 to allegedly escape his creditors. The businessman later proposed to pay a settlement amount of Rs 6,868 crore, an offer that was turned down by the banks.


“In our rejoinder to Mallya’s affidavit, we have stated that he has not even indicated the date of his return to the country,” attorney general Mukul Rohatgi said, adding that the liquor baron also failed to deposit a “substantial amount to establish his bona fide” intentions.

Rohatgi said that the “non-disclosure” of assets-related information by Mallya prevents the banks from ascertaining his ability to repay.

“We have nothing to do with Mallya’s claim that he cannot appear personally because of the government’s action against him,” the banks said in their affidavit. They also expressed disapproval over the fact that Mallya and his companies wanted to submit the data in a sealed cover to the apex court instead of them.


The rejoinder was filed in response to Mallya’s affidavit, which claimed that banks had no right to seek information on his overseas assets because he was an NRI since 1988. The businessman stated that as he was an NRI, neither his wife nor his three children – all US citizens – were required to disclose their assets. “My overseas assets were not considered while granting the loans,” he said in a statement.

Mallya, however, said he was willing to deposit an aggregate of Rs 1,591 crore before the apex court to show that his intentions were bona fide.

The Supreme Court had earlier directed the businessman to disclose the total assets owned by him and his family by April 21, and indicate when he would appear before it. It had also asked Mallya to deposit a “substantial amount” to prove that he was “serious” about conducting meaningful negotiations and arriving at a settlement.

 

Courtesy: hindustantimes.com