Wilful defaulter Vijay Mallya's offer of £400 million has been rejected by the 17-lender group which seeks a repayment of more than £900 million. His proposal presented to the Supreme Court, included a payment of £200 million by September and the rest subject to conditions. A source said that, “Lenders have decided that they want a minimum of £490 million to be paid upfront, which is the principal loan amount. Further, they would demand interest component as well.”
The banks said most of the proposal was filled with caveats, which provoked doubts about whether the assets will actually yield the amounts stated. Mallya's proposal suggests that shares of companies pledged against loans be sold off, from which, banks will be able to get around £200 million after paying off those who loaned money against the equity. The group of 17 lenders is head by the State Bank of India and is currently fighting more than 20 cases in various courts and debt recovery tribunals across the state. They have sought Mallya's return after he left the country last month anticipating legal action. The Enforcement Directorate has asked Mallya to present himself on April 9, after he failed to appear on April 2.
Vijay Mallya, son of businessman Vittal Mallya, took over as Chairman of United Breweries Group after his father's death, at the age of 28. Once the reigning 'King of Good Times', Mallya is the ex-chairman of United Spirits Ltd, the largest alcoholic beverage company in India, with his fingers in different pies. He was the owner of the Kingfisher Airlines, and co-owner of Formula One team Sahara Force India, he has been Chairman to several companies. With a natural taste in nothing but the finest, Mallya is mostly known for his extravagant lifestyle.
The government, banks, and the media were right behind the tycoon's tail the whole of March as he felt the heat over dues in unpaid loans and interest. Facing the worst crisis of his life, Mallya however, was smart enough to sneak out of the country, to reportedly London, before the banks could issue a legal case on him. Even as the ED closed a notice on him asking him to return to the country to settle, Mallya said that loan defaults are a business matter and banks give out loans knowing the risk involved, adding that he didn't feel the time was right to return to India. With London locals claiming to see him zooming around the streets in his fancy cars, his “secret” house wasn't too difficult to sight as the 'Ladywalk' estate is spread over 30 acres, barricaded with metal gates from wall to wall and closely guarded. Well, as it is said, the rich don't even go broke the same as the rest of us.
