In a change of attitude, bankers are in talks of settling the loan default with Vijay Mallya-promoted Kingfisher Airlines, on the condition that the government is willing to give cover. "Given that high-profile nature of the case, it is difficult if we opt for a settlement below the £900 million that we have been demanding. But if the government provides a protection, we can look at a deal," a senior executive at a large bank said. Another executive said without cover against the action from CAG or CBI, no banker would settle the loan even if it made sense.
Caught up in the Enforcement Directorate's moves to freeze Mallya's assets, is the Kingfisher Villa in Goa. The property has been attached by SBICAP Trustee Company Limited as part of recovery proceedings for loans given by an SBI-led consortium to the now defunct Kingfisher Airlines. The villa which stands at around £9 million, stretches from the main Candolim-Calangute road right up to the beach. It is mostly known for the lavish parties thrown with guests like Enrique Iglesias present.
The drinks baron, under pressure to repay loans, in a recent statement has said he has every intention of honouring commitments and that he has made a new settlement offer to main lender State Bank of India and was hopeful of making quick progress on the matter. Directors who were present at a United Breweries Ltd board meeting Mallya chaired by video-conference, were positive that amendments would be made.
Kiran Mazumdar-Shaw, an independent board member, said, "We expressed concerns over the various issues and Mallya has assured us that he is in serious negotiations with the banks to repay the loans as soon as possible. He has said he is willing to return to India to answer all questions but he has to be assured of his safety and freedom. Performance of the company has been extremely good and there is no corporate governance issue that has impacted it owing to Mallya."
Also, the ED has approached the Interpol to issue a red corner notice against Mallya, as the UK informed the government that they cannot comply with their request to deport him, but they are ready to consider his extradition. A statement issued by the Ministry of External Affairs official spokesperson Vikas Swarup, said, "The UK Government has informed that under the 1971 Immigration Act, the UK does not require an individual to hold a valid passport in order to remain in the UK if they have extant leave to remain as long as their passport was valid when leave to remain or enter the UK was conferred."
