Mallya to K’taka HC: I have Rs 15,000 crore to settle dues

Mangalore Today News Network

Bengaluru, Dec 11, 2018 : On December 6, liquor baron Vijay Mallya took to Twitter and said, "Respectfully to all commentators, I cannot understand how my extradition decision or the recent extradition from Dubai and my settlement offer are linked in any way. Wherever I am physically, my appeal is please take the money. I want to stop the narrative that I stole money."

 

Words coming from a man who is facing both criminal and civil litigations in many Indian courts and has been living in the UK since 2016. Now, let’s not get confused with the criminal proceedings against Vijay Mallya under PMLA (Prevention of Money Laundering Act) and Fugitive Economic Offenders Bill in the Bombay HC and the efforts for Mallya’s extradition from the UK by the Enforcement Directorate.

At hand is a civil matter, public sector bank consortium looking to get back the money they lent to now defunct Kingfisher Airlines and United Breweries Holdings Limited which stood as it guarantor. Following the winding up order passed by Karnataka High Court and the appointment of an official liquidator there after, United Breweries Holdings Limited or UBHL filed an appeal in the Karnataka High Court against this very order, a company which once was the parent holding of UBL and USL and MCFL.

Following a long drawn litigation with the banks which has now lasted over 6 years, early January last year, the Debt Recovery Tribunal in Bengaluru passed an order asking the company to pay over RS 6200 crore with an interest of 11.5 per cent per annum till the recovery.

The loan amount as admitted to by UBHL counsel as of today stands at around Rs 10000 crore and the company owes another Rs 2000 crore to the trade creditors. On June 22 this year, Vijay Mallya through his counsel filed an interlocutory application seeking relief, of appointment of a court committee to crystallise his assets, so that there could be a definitive sum made available to service all the debts. The revised and the latest offer made by him on August 16 sets out a complete list of assets that are at existing to service the existing debts.

Business Today perused the 8 page document where Mallya lists assets of over 15,000 crores. The documents sets out the market value of the attached assets and sums deposited with various courts that are available at the disposal whose value if realised could benefit all parties.

Now according to the documents the attachment of shares by UBHL and other entities by the Enforcement Directorate through various directions stands at a value of Rs 1526.52 crore.

While the DRT attachment of bank FDs, dividend receivables from UBL and investments in mutual funds of both Vijay Mallya and UBHL stand at Rs 205.09 crore, the deposits with the high court and the interest earned there off and the amount recovered through sale of Kingfisher villa by bankers, all of the above assets of UBHL bring in another Rs 1559.63 crore to the table.

According to the offer all these assets that are lying with various authorities if realised would yield around Rs 15,076.36 crore. This is the premise on which Vijay Mallya has been contending that he would not only be able to pay off the banks but also would be left with surplus and even if any other claim arising as an off shoot could be settled.

While the banks have asked UBHL to agree for part payments through consent to use the money deposited in the court to show goodwill and intent to settle, the company is yet to agree. The Karnataka High court has now agreed to hear the appeal along with the application filed for settlement on December 17.