With ‘fugitive economic offender’ sword looming, Vijay Mallya offers to pay back; makes this appeal

By: | Updated: June 27, 2018 1:03 PM

Just days after liquor baron Vijay Mallya became the first person to be tried under India's new Fugitive Economic Offenders Ordinance, the former King of Good Times has offered to pay up all his dues to creditors.

Vijay Mallya said that on June 22, he filed an application before the Karnataka High Court “setting out available assets of approximately Rs 13,900 crores.

Just days after liquor baron Vijay Mallya became the first person to be tried under India’s new Fugitive Economic Offenders Ordinance, the former ‘King of Good Times’ has offered to pay up all his dues to creditors. Last week, the ED (Enforcement Directorate) 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.

Notably, in a media statement yesterday, Vijay Mallya said that on June 22, he filed an application before the Karnataka High Court “setting out available assets of approximately Rs 13,900 crores.” According to government data as on May 15, Kingfisher Airlines owes Rs 9,990 crore to a consortium of 17 public sector banks.

In response to potentially being declared a fugitive economic offender, Vijay Mallya tweeted, “I am asked for comment on being labelled a Fugitive Economic Offender. When I have placed assets on the table before the Hon’Ble Karnataka High Court in excess of the PSU Bank claims how can I be an Economic Offender ? The Fugitive part falls away.”


While Vijay Mallya’s offer to pay back dues comes ahead of him potentially being declared a “fugitive economic offender,”  he said that he made the offer now as he was unable to make such an offer before due to various ‘circumstantial changes’ about the value of his available assets. “However I have honestly pursued settlement efforts since 2016,” he added.

Further, Mallya also tweeted that he has always had honest intentions, and his latest offer has got nothing to do with him being potentially declared a fugitive economic offender. “It is incorrect that my settlement offer before the Hon’Ble Karnataka HC was motivated by the latest charge sheet under the media reported Fugitive Ordinance. I always had honest intentions to settle and there is ample proof. Anyway I hope the sale of assets is approved for Banks,” he tweeted.


Mallya’s offer to sell assets to repay banks may not be accepted by investigative agencies, The Indian Express reported citing sources. “Ninety per cent of the assets that Mallya has offered to sell has already been attached by ED. The agency has also moved court for confiscation of these assets under the Fugitive Economic Offenders Ordinance, which allows the sale of assets even before the trial begins. In two months, the court will decide on the ED application based on Mallya’s response and if the court allows the plea of the agency, the assets can be sold and banks can be repaid,” sources told the newspaper.

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