Mallya says he 'has and will continue to make efforts' to settle PSBs' dues

Answer: Vijay Mallya

Liquor baron Vijay Mallya on Tuesday said that "he has made and will continue to make every effort to settle with public sector banks (PSBs)," according to a report by Reuters.

Earlier this month, Moneycontrol had reported that India has made its first move to clamp down on big bank loan defaulters under a new law.

Breaking his silence over the issue, Mallya said in the statement, “I have been accused by politicians and the media alike of having stolen and run away with Rs 9,000 crore that was loaned to Kingfisher Airlines (KFA). Some of the lending Banks have also labelled me a wilful defaulter.”

“I am tired of this relentless pursuit of me by the Government and its criminal agencies. All my efforts are either ignored or misunderstood,” Mallya said in the statement.

“Recovery of Loans is a civil matter which has been criminalised in my case,” Mallya added.

“In summary, I have become the “Poster Boy” of Bank default and a lightning rod of public anger. I wrote letters to both the Prime Minister and the Finance Minister on 15^th April 2016 and am making these letters public to put things in the right perspective. No response was received from either of them,” Mallya claimed in a statement.

“The Consortium of 17 Banks led by State Bank of India (SBI) made various loans to KFA of approximately Rs 5,500 crore. Recoveries in excess of Rs 600 crore have since been made through the sale of pledged assets and a further Rs 1,280 crore has been lying deposited with the Hon’ble Karnataka High Court since 2013 (aggregating to in excess of Rs 1,880 crore),” Mallya has said speaking about the loan repayment.

Responding to grievances of former KFA employees, Mallya said: “UB Group, at its zenith employed more than 66,000 people, most of whom served the Group for 20-30 years. If I was an inconsiderate person who did not believe in looking after employees, we would not have such a track record for so many decades.”

Mallya also released the letter he had sent to the prime minister in April 2016 listing achievements of the UB Group.

“As a non-resident Indian since 1988, I also successfully developed a global business in alcoholic beverages, paints and hospitality. Most unfortunately, nothing I have stated above is either understood, appreciated or brought into the public domain by the media,” Mallya had written in the letter.

“I seek your patience and understanding of the severe predicaments that I am currently facing and appeal to your good sense of justice so that I am treated in a fair manner,” Mallya added.

The Enforcement Directorate (ED) had filed fresh charges against Mallya under the Fugitive Economic Offenders Ordinance in the IDBI Bank-Kingfisher Airlines (KFA) loan fraud case.

The ED moved the court against Mallya, seeking to declare him a 'fugitive offender' and to confiscate his assets worth Rs 12,500 crore.

Officials said the central investigative agency filed an application before a special court in Mumbai, under the recently promulgated Fugitive Economic Offenders Ordinance, which empowers it to confiscate "all linked assets" of an absconding loan defaulter.

The agency was said to have sought the court's permission to "confiscate" assets worth more than Rs 9,000 crore of the beleaguered businessman and his firms under the ordinance.

"The SBI, which is the consortium leader, has calculated the amount (of the loan) to the tune of Rs 9,990.07 crore (including applied interest) as on May 15, 2018," the agency said in the charge sheet.

The ED alleged that Mallya and KAL officials "hatched a criminal conspiracy for obtaining/sanctioning of bank loan to Ms KAL in gross violations of established procedures and the firm had no intention for repayment of the loan."

The ED had in 2017, filed its first charge sheet against Mallya, who is now in London, in the Rs 900 crore bank loan fraud case. It is said to have attached assets worth Rs 9,890 crore in this case till now.