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Gave personal guarantee for loans to KFA under coercion:Mallya

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Press Trust of India New Delhi
Last Updated : May 04 2016 | 9:13 PM IST
Embattled tycoon Vijay Mallya has defended his position of not being personally liable for repayment of Rs 9,431 crore loan to now defunct Kingfisher Airlines saying he had given personal guarantee for the loans "under coercion".
Mallya, who flew to London on March 2 just days before a consortium of lenders knocked on doors of the Supreme Court to recover Rs 9,431.65 crore of loan and interest, in his deposition to the Rajya Sabha Committee on Ethics said he had approached the Bombay High Court for declaring his personal guarantee for KFA loan void way back in 2013.
"The fact of the matter is that much prior to the consortium of banks which had advanced loans to Kingfisher Airlines Ltd recalling those loans, in or about March 2013, I along with others filed Suit... In the Bombay High Court inter alia seeking a declaration that the personal guarantee dated December 21, 2010 executed by me in favour of the consortium of banks was void, ab initio and non-est on the ground that it was executed by me under coercion," he said in a signed letter to the panel on May 2.
The Committee, headed by Karan Singh of Congress, recommended his disqualification as Rajya Sabha MP for defaulting on loan repayments.
Mallya said the case was still pending and the matter was sub-judice. "It is on this basis that I am contesting the application filed by the Consortium of banks, inter alia against me before the Debt Recovery Tribunal, Bengaluru, seeking a decree against me."
The Supreme Court, he said, had directed DRT to dispose of the application expeditiously.
Stating that there was no tenable basis for the unanimous decision reached by the Ethics Committee, he said he had "no faith in the current climate prevailing in the country" that he would get "any justice even at the hands of my colleagues in the Ethics Committee.

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First Published: May 04 2016 | 9:13 PM IST

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