SBI offers one-time settlement of Kingfisher loans but Mallya has some conditions

State Bank of India (SBI) has offered to have a one-time settlement of the Kingfisher Airlines loan issue with India’s former liquor baron Vijay Mallya. However, the bank would like him to agree that he would repay the outstanding principal amount along with some interest and legal fees.

To this, Mallya has put some conditions which are said to unacceptable to the bank, as said by SBI chairman Arundhati Bhattacharya.

Bhattacharya told a parliamentary panel, set up for scrutinizing amendments to debt recovery laws, that in the past, SBI has aggressively tackled the matter and is now open to reaching one-time settlements, only if he offers to repay the principal along with a reasonable amount of interest.

However, she said that while Mallya had expressed his willingness to have a settlement, he had laid down some of his conditions which were not acceptable to the country’s largest bank, which led the consortium of PSBs that had approached the court for an order against Mallya.

However, when contacted by TNN, Bhattacharya said, "Parliamentary committee proceedings are privileged communications and I cannot comment or communicate on the same."

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