According to the SBI counsel, Mallya’s now defunct Kingfisher Airline owes the consortium a whopping Rs.10,000 crore, including compound interest over the remaining combined loans of Rs.7,800 crore borrowed between 2004-12 before it was grounded and shut down subsequently.
Rohatgi said that the plea has been moved by 17 banks, including State Bank of India, against Mallya whose various firms have taken loan from them.
A household name in India and the face of one of the country’s most high profile collapses, Mr Mallya agreed to quitting Diageo-controlled United Spirits with a severance package following months of wrangling.
The group have also sought Mallya’s arres and asked for his passport to be impounded after he said last month that he planned to move to Britain to be closer to his children. “The top court agreed to give urgent hearing to the banks” plea and has listed it for Wednesday after attorney general said it would be hard to catch Mallya, an NRI, if he leaves country.
Reports quoting official sources said the agency has already filed charges under the Prevention of Money Laundering Act (PMLA) based on an FIR registered past year by the CBI in the same case.
Vijay Mallya’s goose is cooked.
Mallya said over the weekend he had no plans to run from his creditors and was in talks over a one-time settlement to resolve Kingfisher’s debts. “None of these large borrowers have been declared wilful defaulters, but unfortunately I have been declared a wilful defaulter by certain banks on technical grounds”.
Kingfisher, once India’s second-biggest airline, stopped flying more than three years ago.
Debt recovery tribunal directed global liquor major Diageo not to make the payment to Mallya.
The ED will also be looking at the books of Kingfisher Airlines to ascertain various omissions that point to money laundering by Mallya.
The CBI had booked Mallya, director of Kingfisher Airlines, A Raghunathan, chief financial officer of the airlines, and unknown officials of IDBI Bank in its FIR, alleging that the loan was sanctioned in violation of norms regarding credit limits.
In addition, ED sleuths will also be scrutinising transactions involving other companies owned by Mallya across the world.