vijay mallya

Led by the State Bank of India, a consortium of 17 banks has rejected a proposal issued by beleaguered ‘King of Good Times’ liquor baron Vijay Mallya and his firms to pay back Rs. 4,000 crore by September 30, saying that there is “no value in the offer” and is likely to plead the Supreme Court on Wednesday to pass direction against him.

Kingfisher Airlines Chairman Vijay Mallya had offered to pay banks Rs 4,000 crore as partial settlement of the carrier’s debts and indicated to the Supreme Court that the atmosphere in India was too vitiated for him to immediately return.

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The proposal, submitted to the court in a sealed cover on behalf of Mallya and Kingfisher Airlines, included an assurance to pay Rs 4,000 crore by September to a consortium of banks led by the State Bank of India.

The defunct airline founded by Mallya, a Rajya Sabha member, owes more than Rs. 9,000 crore to the lenders.

The consortium of 13 banks, some of them in the public sector, had moved the Supreme Court earlier this month to impound Mr. Mallya’s passport in a bid to restrain him from leaving the country. But on March 9, the first day of court hearing, Attorney-General Mukul Rohatgi told the court that Mr. Mallya had already left the country.

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