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  Business   Companies  03 Mar 2017  Banks urge SC to force Mallya to deposit $40 mn

Banks urge SC to force Mallya to deposit $40 mn

Published : Mar 3, 2017, 5:16 pm IST
Updated : Mar 3, 2017, 5:17 pm IST

A group of 17 public sector banks has alleged Mallya illegaly transfered Diageo deal money outside country.

Vijay Mallya has been living in UK.
 Vijay Mallya has been living in UK.

 Mumbai: A group of 17 public sector lenders have ratcheted up their efforts to recover around Rs 9,000 crore money granted to now defunct Kingfisher Airlines run by liquor baron Vijay Mallya.

Banks on Friday urged the Supreme Court to force Vijay Mallya to deposit $40 million in court. Banks also requested the apex court to ask Mallya to be present in court if he failed to deposit money, according to ET Now.

According to the filing by the consortium of banks in SC, Mallya "illegally transferred Diageo deal money outside India". Last year, Mallya reached a settlement with United Spirits that cleared him from claims of mismanagement.

Under Diageo deal, Vija Mallya was given $75 million which the banks wanted frozen at the Debt Recovery Tribunal through a plea. DRT in early 2017 allowed group of banks to start recovery process.

The total debt that Mallya owes to banks included interest payments as well that accrued to the principal amount over the years since Mallya failed to repay them.

The embattled businessman who has been living in a self-imposed exile in the UK was declared a wilful defaulter by the State Bank of India, that has been leading the consortium in pursuance of loan default case.

Apart form that a special PMLA court in Mumbai has labelled him as a proclaimed offender as he has failed to appear before court on several occasions despite many bailable and non-bailable warrants due against him.

Tags: vijay mallya, state bank, wilful defaulter, loan default, kingfisher airline
Location: India, Maharashtra, Mumbai (Bombay)