Kingfisher Airlines chairman Vijay Mallya on Wednesday submitted a detailed repayment plan to the Supreme Court, saying he would repay R4,000 crore of bank loans. Kingfisher Airlines, which was grounded in October 2012, owes lenders close to R7,000 crore. A bench comprising justices Kurian Joseph and RF Nariman has allowed lenders a week’s time to respond to the proposal and posted the matter for further hearing on April 7.

State Bank of India (SBI) said in an emailed statement it had received the proposal and was examining it. “The consortium of banks led by State Bank of India confirms receipt of an offer for settlement of dues from Kingfisher Airlines Ltd,” the bank said. Appearing for Kingfisher and Mallya, CS Vaidyanathan said that the copy of the proposal was given to the consortium of banks on Wednesday. He also requested the proposal be kept in a sealed cover for the time being, as negotiations were going on.

FE reported on Wednesday that Mallya had recently offered to pay R2,000 crore to settle all claims. However, the consortium had turned down the offer saying it was not willing to take a haircut. Kingfisher, now declared a wilful defaulter by multiple banks, owes lenders R6,963 crore.

While bankers have been making all efforts to recover their money despite facing some legal hurdles, the Enforcement Directorate has initiated an investigation into his financial affairs, suspecting malfeasance. The ED has summoned Mallya and the businessman, currently in London, is scheduled to appear before the investigative agency on April 2.

A recent auction of Kingfisher Airline’s corporate office in Mumbai flopped without attracting a single buyer, ostensibly because the reserve price was too high. The auction was part of the recovery

initiative using the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Another assets that banks have been trying to get possession of is Kingfisher Villa in Goa. However, they have been unsuccessful so far facing legal hurdles in the local court.

Kingfisher House, pledged to a consortium of 17 banks has been the bone of contention between banks and the I-T department with both claiming their right to possess the property. In 2013, the I-T department had moved a Bangalore court asking lenders to first settle the dues of the department amounting to `350 crore as the property was attached under the Income Tax Act. The I-T department claimed Kingfisher Airlines had deducted tax at source from employees’ salaries and other payments but had failed to deposit the amount with the government entity.

Mallya has blocked bankers’ attempts to attach the villa in Goa claiming United Spirits (USL) has been a tenant since 2005 and consequently, banks cannot sell the property without its approval. Bankers have recovered just a fraction of their dues from Kingfisher Airlines by selling pledged securities. These include real estate and shares in multiple group entities. Banks had also sold around 4 lakh shares of USL pledged with them for `104 crore in 2014.