Supreme Court will give banks info on Mallya’s foreign assets

Brushing aside industrialist Vijay Mallya’s objection that he was not bound to disclose his assets abroad, the SC on Tuesday asked its registry to furnish to the consortium of banks details of his assets, his estranged wife’s and children’s, which have submitted to the court in a sealed cover. A bench of Justices Kurian Joseph and Rohinton Nariman passed this order after attorney-general Mukul Rohatgi, appearing for the banks, submitted that the information in the sealed cover should be disclosed to the banks to go after Mr Mallya and recover the dues. Rejecting the submission made by Mr Mallya’s counsel C.S. Vaidyanathan that such information can be shared only if there is an assurance that they will not be used for any other proceedings, the AG said: “Mallya, a fugitive who is fleeing from justice, cannot claim any immunity from disclosure.”

Earlier, Mr Vaidyanathan argued that at the time of granting loans, only domestic assets were put under consideration by the lenders. Hence, the banks cannot claim details of Mr Mallya’s foreign assets. He said Mr Mallya had put forward two proposals but the banks have rejected them.

The real intention of the banks is not settlement but to see that Mr Mallya is sent to jail, he said.

On the court’s query as to when Mr Mallya proposed to come back to India, his counsel said negotiations can be had even when the industrialist is abroad. He said he had no information as to when M Mallya will return.

A Non bailable warrant has been issued and his passport had been revoked. What purpose will it serve if he is going to be arrested and sent to Tihar jail on his arriving India. When my liberty is at stake how can anyone expect me to return, counsel asked.

Counsel said he was prepared to deposit an additional Rs 2,468 crore over and above the earlier offer of Rs 4,400 crore against the demand of Rs 9,000 crore but banks are not sincere in settlement. Objecting to disclosure of assets of Mallya’s estranged wife and children, who are foreign citizens, counsel said that he was not holding any benami properties in their names.

The AG submitted that Mallya has disobeyed and failed to comply with the court orders to put on record details of his assets, apart from disabling banks to assess his ability to repay the loan. The banks cannot accept Mallya’s proposals offering settlement till assets’ disclosure and further that his personal guarantee is indispensable for recovery of dues. About Mallya’s inability to return to India after suspension of his passport, the AG said that this was being used by him as a trick to avoid coming back to the country.If he will willing to return one way travel document can be issued to him.

Rejecting counsel’s stand, the bench passed a brief order directing the Registry to furnish details contained in the sealed cover to the banks and asked the Debt Recovery Tribunal, Bengalure to dispose of the original petition on recovery of loans within two months.