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Mallya offers to repay 100% of principal loan amount to banks

Vidya Ram London | Updated on December 06, 2018 Published on December 05, 2018

Vijay Mallya (file photo).

UK court's decision on Mallya's extradition trial expected on December 10

Vijay Mallya has had another go at persuading Indian authorities to accept his settlement before the Karnataka High Court, and this time, the grand gesture has been made on Twitter. Mallya’s “offer” comes a week before a judge at Westminster Magistrate’s Court is set to deliver her verdict on India’s attempt to extradite him.

In a series of tweets on Wednesday morning, Mallya, who is facing legal battles in London, pointed to the “thousands of crores” of rupees the Kingfisher group had contributed to the exchequer both at the national and State level over three decades, while insisting that Kingfisher Airline’s woes related to high aviation fuel 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 per cent of the principal amount to them. Please take it,” he tweeted.

 

 

Claiming that his offer was linked neither to the expected judgment in his extradition case nor to the deportation from Dubai to India of British national Christian James Michel, a middleman in the AgustaWestland VVIP helicopter deal, Mallya said he has been offering to settle the dues since 2016.

The contention that Mallya’s default on loans from a consortium of banks, including IDBI, resulted from a hostile operating environment for the aviation sector, the likes of which had never been seen before, and sky-high oil prices has been central to the businessman’s defence in the extradition case.

ALSO READ: Mallya’s spirited offer to repay only principal may not fly with creditors

During the hearings in London that commenced in December last year and concluded in mid-September, Britain’s Crown Prosecution Service, which represents India in its attempt to extradite Mallya, had argued that he had never intended to repay the loan, used false grounds to obtain them, and used them for purposes they had never been intended for.

However, Mallya’s defence team has argued that the case was politically motivated, and the collapse had been a case of a “business failure” with the loans having been taken out in a meaningful attempt to revive the business in the face of extraordinary challenges that had seen airline businesses struggle globally.

 

Seeking fair treatment

In his tweets, Mallya also denied the suggestion he had “run away” with funds from public sector banks. “Why don’t I get fair treatment and the same loud noise about my comprehensive settlement offer before the Karnataka High Court. Sad.”

The long-awaited ruling in the extradition case is expected at Westminster Magistrate’s Court on Monday, which could be followed by an appeals process.

Published on December 05, 2018
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