On 31st of March, the bench of Justices Kurian Joseph and R F Nariman received a closed envelope with Vijay Mallya’s proposal in it. The proposal was about the failed businessman’s firms which will be ready to pay Rs 2,000 crore upfront and over Rs 2,000 crore by September 30. The bench had then passed the proposal to SBI, one bank which has been defaulted greatly by Mallya, to go through all the clauses and let the court know by 7th of April whether its acceptable or not.
The presented proposal which was from behalf of Vijay Mallya, Kingfisher Airlines, UB Group and Kingfisher Finvest has been out of moderate acceptance range and thus faced blatant rejection from SBI and other banks.
On this rejection decision of their, SBI was questioned and as an answer they told the respective source that they had informed Mallya three days before only that these money installments he is willing to offer are not acceptable. Anything less than Rs 9000 crore is unacceptable.
Here is a tabulated list of the money Mallya owes to each bank.
|Name of the Bank||Amount in Crore|
|State Bank of India||1600|
|Punjab National Bank||800|
|Bank of India||650|
|Bank of Baroda||550|
|State Bank of Mysore||150|
|Punjab & Sind Bank||60|
The association informed Supreme Court that they had “advanced to KFAloans of thousands of crores of rupees. By way of a Master Debt Recast Agreement of December 21, 2010, and other related documents, the existing lands were restructured and treated as a single facility. United Breweries and Mallya have on December 21, 2010, executed both corporate guarantee and personal guarantee promising repayment of the entire amount due to the banks”.
Since nothing of this repayment section has been covered until now and whatever amount was being offered has been rejected, let us see what next turn will this case take and will the banks get what they should or Mallya will fail to do so? Will the banks regret this decision later or Mallya will try harder to repay what he owes to all these 13 Indian banks?