Vijay Mallya, loan default ‘Poster Boy’, vows to settle with PSU Banks

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Updated: June 26, 2018 2:35:48 PM

Liquor baron Vijay Mallya, who might soon be declared a Fugitive Economic Offender, said that he has been made the 'Poster Boy' of loan default and a lightning rod of public anger.

Vijay Mallya, loan default 'Poster Boy', vows to settle with PSU BanksLiquor baron Vijay Mallya on Tuesday said that he has been made the ‘Poster Boy’ of loan default. (Image: AP)

Liquor baron Vijay Mallya, who might soon be declared a Fugitive Economic Offender, said that he has been made the ‘Poster Boy’ of loan default and a lightning rod of public anger and that that he “has made and will continue to make every effort to settle with public sector banks (PSBs), Reuters reported on Tuesday. Vijay Mallya allegedly ran to ground his high-profile airline ‘Kingfisher’ and failed to pay off about Rs 9,000 crore debt of PSBs.

Vijay Mallya, who is currently fighting against extradition to India from the UK, also said the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have filed charge sheets against him “with various untenable and blatantly false allegations acting at the behest of the Government and lending Banks”. He said that an application has been filed before Karnataka High Court to sell assets worth about Rs 139 billion to repay creditors including PSBs.

Breaking his silence after a long time, to state the “factual position in response to the controversy, unfortunately, surrounding” him, Mallya said he had written letters to both the Prime Minister and the finance minister on April 15, 2016, to explain his side of the story. “No response was received from either of them,” he said in a statement.

Meanwhile last week, the ED made its first official move to clampdown against big bank loan defaulters as it moved court against Vijay Mallya seeking to declare him a ‘fugitive offender’ and to confiscate his assets worth Rs 12,500 crore.

The agency filed an application before a Mumbai court under the recently promulgated Fugitive Economic Offenders Ordinance that empowers it to confiscate all assets of an absconding loan defaulter. On April 21, the Union Cabinet approved the ordinance and the President gave his assent to its promulgation a day later. The ED has furnished evidence in its two charge sheets under the Prevention of Money Laundering Act (PMLA)

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