Delhi: A group of banks have requested the Supreme Court to stop liquor tycoon Vijay Mallya from leaving India because of the massive debt. The court is expected to look into the matter on the plea of 17 credit bankers including State Bank of India.
Reportedly, the businessman had said that he wants to move to Britain to be closer to his children after his resignation as Chairman of United Spirits, as part of his $75 million or Rs 515 crore settlement with spirits giant Diageo. On Monday, the Debt Recovery Tribunal blocked the settlement by ruling in favor of the banks owed money by Mr Mallya’s Kingfisher Airlines.
State Bank of India and other banks had demanded “first right” to the Diageo cash, arguing they had been left with massive unpaid debts of $1.4 billion or Rs 9,400 crore as of 2013, when the airline collapsed. SBI is owed Rs 1,600 crore by Kingfisher.
Once dubbed “King of Good Times” for his extravagant lifestyle, Mr Mallya is also confronting a money-laundering case against him by the Enforcement Directorate for allegedly sending abroad Rs 900 crore that his airline borrowed from a bank.
Kingfisher, once India’s second-biggest airline, stopped flying more than three years ago. Mr Mallya said in a statement on Sunday that he is in talks with the banks for a one-time settlement of Kingfisher’s debt.
