In a major win, absconding liquor baron Vijay Mallya has agreed to pay off dues to Indian banks. Mallya said that he is willing to pay back at least Rs 13,000 crore to the consortium of banks.
He also mentioned that he tried his best to save Kingfisher Airlines but sadly things did not go according to his plans.
Mallya explained how Kingfisher Airlines’ losses mounted and struggled financially due to rising aviation fuel prices, and yet the now-defunct airlines had made handsome contributions to the States.
“Airlines struggling financially partly becoz of high ATF prices. Kingfisher was a fab airline that faced the highest ever crude prices of $ 140/barrel. Losses mounted and that’s where Banks money went.I have offered to repay 100 % of the Principal amount to them. Please take it,” Mallya wrote on Twiter.
Vijay Mallya, his now defunct Kingfisher Airlines and others availed loans from various banks. The outstanding amount, including interest, is Rs. 9,990.07 crore, officials had said while filing the plea under the new law.
Under the new law, property confiscated from fugitive offenders is gone for good. “All his properties are attached and if the court decides to confiscate his properties, then under the new Fugitive Economic Offenders law, properties once seized cannot be released.”
Another fact which went against him is the decision of Debt Recovery Tribunal, which recently passed an order that Vijay Mallya needs to pay Rs. 6,203 crore to the government and a simple interest of 11.5 per cent would be charged on the amount. So he owes government about Rs. 9,000 crore.
The Enforcement Directorate (ED) has seized properties worth around Rs. 13,500 crore.
So, the fear of losing all and then extradition to India with permanent tag of a criminal awoke the conscience of Mallya. Let’s see how the Banks would recover the amount. Will it be through auctioning of properties or by repaying the money? Only time will tell.
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