A group of banks has asked the Supreme Court to stop liquor
baron Vijay Mallya from leaving India because of the massive debt that his
now-defunct airline owes.
The court is expected to take up the matter today on the request
of the 17 creditor banks, including State Bank of India.
The businessman had earlier said that he wants to move to
Britain to be closer to his children after his resignation as chairman of
United Spirits, as part of his $75 million or Rs 515 crore settlement with
spirits giant Diageo.
On Monday, the Debt Recovery Tribunal blocked the
settlement, ruling in favour of the banks owed money by Mr Mallya's Kingfisher
Airlines.
State Bank of India and other banks had demanded "first
right" to the Diageo cash, arguing they had been left with massive unpaid
debts of $1.4 billion or Rs 9,400 crore as of 2013, when the airline collapsed.
SBI is owed Rs 1,600 crore by Kingfisher.
Once dubbed "King of Good Times" for his
extravagant lifestyle, Mr Mallya is also confronting a money-laundering case
against him by the Enforcement Directorate for allegedly sending abroad Rs 900
crore that his airline borrowed from a bank.
Kingfisher, once India's second-biggest airline, stopped
flying more than three years ago.
Mr Mallya said in a statement on Sunday that he is in talks
with the banks for a one-time settlement of Kingfisher's debt.
A household name in India and the face of one of the
country's most high profile collapses, Mr Mallya agreed to quitting Diageo-controlled
United Spirits with a severance package following months of wrangling.
He was to receive $40 million or Rs 275 crore immediately
and the remainder over five years.
Mr Mallya sold most of his stake in United Spirits to Diageo
when his Kingfisher Airlines was grounded by debt and safety concerns, with
staff left unpaid.
He said on Sunday that he had become a "poster
boy" for bad loans when others owed much more than Kingfisher.
Kingfisher's creditor banks are set to auction a company
property in India's financial capital Mumbai this month. But it is expected to
fetch just a fraction of what they are owed.
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