Vijay Mallya files affidavit in SC; refuses to give info on overseas assets

Zee Media Bureau

New Delhi: Beleaguered liquor baron Vijay Mallya on Thursday filed an affidavit in Supreme Court in the loan default case and sought permission to submit info on assets in a sealed envelope on June 26.

The liquor baron, however, refused to give any info on overseas assets stating it was a private matter and that the banks have no rights over it as he wasn an NRI since 1988.

"Statement of Assets was confined to assets in India only and overseas assets were not disclosed which as a Non-resident Indian, Respondent no 3 (Vijay Mallya) is not obliged to disclose even to income tax authorities in his Indian tax returns," an affidavit filed on behalf of Mallya said.

The businessman claimed that he was an NRI for income tax and foreign exchange regulation purposes since 1988.

In his affidavit, Mallya claimed that as an NRI for income tax and foreign exchange regulation purposes since 1988, he was not obliged to disclose his overseas assets, and added that his three children, wife, all US citizens, also need not disclose their assets. "Overseas assets were not considered while granting loans," he said in his statement.

He also said his movable and non-movable overseas assets were never considered while granting loans.

The apex court had asked Mallya to disclose by April 21 the total assets owned by him and his family in India and abroad. The court had also sought an indication from him when he will appear before it. 

Mallya, however, said to demonstrate his bonafide and also that of his companies, an aggregate of Rs 1591 crores can be deposited before the apex court.

He further said that he can pay the token money only if the SC intervenes in pending cases, but he won't be able to pay until the court allows sale of shares stuck in litigation, he said.

The affidavit further said that Kingfisher Airline was a genuine commercial business failure and denied that the loan advanced by the banks to the company were misused or "Mallya has amassed assets/properties in the name of his family members or relatives or friends with the intention to avoid recovery of alleged dues by the banks."

It said UB Group of ompanies and its associates had infused large sums of money in Kingfisher Airlines "by way of loans, equity participation, liquidation of securities offered to creditors/lenders of Kingfisher Airlines aggregating to Rs 6,107.53 crores, all of which has been lost or is incapable of recovery."

Earlier, the liquor baron had proposed to give Rs 400 crore to the banks by September. However, it was turned down.

On April 19, in a major blow, a special court had issued a non-bailable warrant against him in the IDBI Bank loan case on the plea of the Enforcement Directorate.The Ministry of External Affairs had earlier suspended Mr. Mallya’s passport on the ED’s advice.

The businessman, who left the country in the midst of efforts by a consortium of banks to recover dues from Kingfisher Airlines, did not appear before the agency in response to summons on three occasions.

Earlier today, the ED had approached the External Affairs Ministry seeking initiation of deportation proceedings against liquor baron in the loan default case.

A local court in Hyderabad on Wednesday had also convicted the industrialist in a cheque-bouncing case filed against him by GMR Hyderabad International Airport Ltd.