NRI Mallya says banks have no rights over foreign assets

INTERESvMallyaIn an affidavit filed on behalf of businessman Vijay Mallya, he told the Supreme Court that banks have no right over information on his overseas assets as he has been an NRI since 1988 for tax and foreign exchange regulation purposes, and as the Statements of Assets were confined to assets only in India, overseas assets were not disclosed, and he is not obliged to declare them even to tax authorities in India.

Mallya did however say that to demonstrate his and his companies bonafides, an aggregate of Rs.1591 crore can be deposited before the Court.

The affidavit also said that Kingfisher Airlines was a genuine commercial failure and he denied that the loans advanced by the banks were misused and that he amassed assets/properties in the name of his family or friends with the intention to avoid recovery of alleged dues by the banks.

The affidavit said UB Group 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 aggregated Rs.6,107.53, all of which was lost or unrecoverable.

The court had directed Mallya to disclose by April 21, the total assets owned by him in India and abroad, while asking for an indication of when he will appear before it. It asked Mallya who owes over Rs.9000 crore to 17 banks, to deposit a ‘substantial’ amount with it to prove his bonafides about negotiations and settlements.