Vijay Mallya may make a revised offer of Rs 6,000 crore: Report

Offer to involve staggered payments through to September, but banks seek principal payment immediately, The Economic Times reports

Industrialist Vijay Mallya is likely to make a revised settlement offer of Rs 6,000 crore to banks, which would involve staggered payments through to September, The Economic Times reported on Thursday. 

However, bankers have sought principal payment of Rs 4,900 crore immediately, followed by payment of the interest amount in a staggered manner, the report added, citing banking executives. 

 “We are expecting a renewal of the earlier offer, but it has to come with clear timelines of payment. We won't entertain ifs and buts," a senior banker told the newspaper. 
 

"We rejected the earlier offer because a lot of conditions were laid down; it looked like a spider's web.”

"We want him to cough up cash along with a clear list of assets or shares that will be sold to repay the loans, and it has to be adequate," another banker told the publication.

However, Mallya may seek assurance with respect to Enforcement Directorate’s (ED) summons and the demand to revoke his passport, the report said. Lenders have insisted that the industrialist be present in person for talks on the negotiations.  Legal experts have questioned the move stating the situation where Mallya will have to come down as per SC orders, but with the ED waiting to seize his passport or detaining him.

The development comes after the Supreme Court last week asked Mallya to disclose all his assets. The lenders, meanwhile, wanted a substantial amount as deposit before starting negotiations. The court, in response to the demand, had asked Mallya to indicate how much he was willing to deposit in the court. 

Mallya had initially offered to pay Rs 2,000 crore as a settlement offer, as per this Financial Express report. This was eventually increased to Rs 4,000 crore, which included repayment of Rs 2,000 crore upfront, followed by the rest depending on the outcome of a case Kingfisher Airlines had filed against an aircraft maker Airbus.  This offer was rejected by the 17-bank consortium in the Supreme Court last week. 

The court will now hear the case on April 26.