 "Return, with passport: SC to Vijay Mallya")
Liquor baron Vijay Mallya, who is facing legal proceedings for alleged default of loans worth Rs 9,000 crore from various banks, was on Thursday directed by the Supreme Court to disclose by April 21 the total assets owned by him and his family in India and abroad.
The apex court also sought an indication on when he will appear before it. The court asked Mallya to deposit a "substantial amount" with it to "prove his bona fide" that he was "serious" about meaningful negotiations and settlement.
The directions by the Bench, comprising judges Kurian Joseph and R F Nariman, came after a consortium of banks led by State Bank of India "unanimously rejected" the proposal by Mallya and his companies to pay Rs 4,000 crore by September towards settlement of the loans.
After a brief hearing, the matter was posted for further hearing on April 26.
"Vijay Mallya has to prove his bona fides by presenting himself for suitable negotiation and presenting a contingency plan that he is getting money from X and Y and then he will pay to the banks," senior advocate Shyam Divan, appearing for the consortium of banks, said.
"For suitable negotiations, he should be present and should declare all his movable, immovable, tangible and intangible assets in both in India and abroad," he said.
Divan said the proposal given by Mallya in the present form had been rejected and conveyed to him, after which he made a second offer with a "slight modification" on Wednesday evening, which is under consideration. For suitable negotiation, Mallya needs to be in the country and before the court, so that it is known what he plans to do and how, he said.
"These are large figures involved. We think it is reasonable to ask him to make a full, fair and final disclosure of his assets. He can throw contingencies at us for making these payments. He should make a substantial advance deposit and his presence is required so that negotiations can be done person to person. Senior bank officials will also be present in the court to have an effective solution," Divan submitted.
Senior advocate C S Vaidyanathan, appearing for Mallya, said they had got the response from the consortium of banks, after which they replied to it on Wednesday evening. Vaidyanathan said he needed some time to seek further instructions on the decision taken by the consortium of banks. He also said that disclosures of assets were made successively to the banks from 2010 to 2012.
However, the bench asked, "So, now why don't you update the assets?"
The banks also wanted disclosure of assets of Mallya's other close relatives and former relatives, including his ex- wife, which was objected by his counsel.
However, the bench said Mallya has to disclose the assets of his wife and children, besides himself. Taking on record the submissions, the bench said "Respondents (Mallya and his companies) should disclose all the properties - movable, immovable, tangible, intangible - and shareholding, both in India and abroad, to show his bona fides for the substantial negotiation," the bench said.
"Respondents (Mallya and companies) should indicate in their response on how much money they are willing to deposit in the court to show their bona fides," it said. The court also allowed Oriental Bank of Commerce to be impleaded as party in the matter.
In a separate development, North Goa administration has resumed hearing on an application filed by a consortium of banks seeking to seize Kingfisher villa situated at Candolim village. "I started hearing the application (last week) and an interim order has been issued," district collector Neela Mohanan said on Thursday without elaborating.
The Goa bench of the Bombay High Court had extended the time till May 2016 for the district administration to decide on the application after the bankers approached it against the delay in hearing. The administration had earlier informed the HC that it could "not complete the process in December 2015 due to several adjournments sought by the defence counsels". Kingfisher Villa is part of the collateral pledged by United Breweries (Holdings) to banks.
BANKS' ADVOCATE TOLD THE COURT
Senior advocate Shyam Divan
- Mallya's proposal to pay Rs 4,000 crore by September rejected
- On Wednesday evening, Mallya made a second offer with "slight modification"
- Mallya should declare all assets in India and abroad
- He should make a substantial advance deposit
Senior advocate C S Vaidyanathan
- Banks were presented with a new offer on Wednesday evening
- Need time to seek further instructions on the decision by banks
- Disclosure of assets were made successively to the banks from 2010 to 2012
Judges Kurian Joseph and R F Nariman
- Disclose all assets owned by self and family in India and abroad by April 21
- Deposit "substantial amount" with the court to "prove bona fide"
- Further hearing on April 26
