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SC receives Rs 4000 crore repayment plan from Mallya

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Representational file photo, Courtesy- wikimedia commons

New Delhi: Liquor baron Vijay Mallya on Wednesday submitted Rs 4,000 crore repayment plan to Supreme court. Mallya also told the SC that he had two rounds of video conferencing with banks adding that he will repay the amount by September 2016.

SC has allowed the consortium of banks to respond within a week’s time to the proposal and posted the matter for hearing on April 7.Meanwhile the banks have told the apex court that they need time to look at Mallya’s repayment proposal.

Vijay Mallya’s Counsel said negotiations with banks are on but media is exaggerating the issue, therefore proposal should be kept sealed. Justice Kurien, however, observed ‘media ultimately stands for public interest’.

In a stern warning to wilful defaulters like Vijay Mallya, Finance Minister Arun Jaitley couple of days ago said they should settle their dues honourably with the banks or else be ready to face “coercive action” by lenders and investigative agencies.

He further said that banks have certain collaterals of group companies of Vijay Mallya and will take legal action to recover dues that are in excess of Rs 9,000 crore.

Mallya, promoter of long-grounded Kingfisher Airlines, had left India on March 2, presumably for London, days before the Supreme Court heard a plea of clutch of state-owned banks seeking recovery from his group firms.

Mallya and Kingfisher Airlines owed Rs 7,800 crore to a consortium of 17 lenders led by State Bank, which had an exposure of over Rs 1,600 crore to the now defunct airline.

Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).

UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).

Credits: Zee news

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Another Deadline Missed, No Draft Scheme on the Cauvery Dispute Till Now

On the expiry of the six-week deadline, the Centre sought extension of time till the completion of the electoral process in Karnata for submission of the Scheme.

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The court said that even if the Centre has not framed the scheme, Karnataka, under the Cauvery Water Dispute Tribunal award, was obliged to make monthly releases to Tamil Nadu.
Supreme Court of India. Wikimedia commons

The Centre yet again failed to submit a draft Scheme on the Cauvery river water dispute before the Supreme Court on the ground that the Prime Minister and other ministers were campaigning in Karnataka, which Tamil Nadu flayed as “brazen partisanship”.

Seeking 10 more days to finalize the scheme, Attorney General K.K. Venugopal told Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud: “A draft scheme has been placed before the Cabinet. Because of Karnataka elections, the Prime Minister and all other Ministers are in Karnataka. Before that the Prime Minister was abroad (in China).”

It also sought response from the Centre on the steps taken by it since the pronouncing of the judgement for putting in place a scheme for implementing its order on the sharing of Cauvery water among Karnataka, Tamil Nadu, Kerala and Puducherry.
Parliament of India, wikimedia commons

The Centre’s submission was countered strongly by senior counsel Shekhar Naphade, appearing for Tamil Nadu, who said: “Sorry to say, the Central government is politicizing the issue. They are worried about their electoral fate in Karnataka. Election in Karnataka is on May 12 and somehow they don’t want to do it till then. We have enough of it. It is brazen partisanship of the Union of India. It is the end of co-operative federalism.”

The apex court in its February 16 judgement had directed the Centre to frame a Scheme within six months in accordance with the recommendation by the Cauvery River Water Tribunal for constitution of the Cauvery Management Board (CMB) and Cauvery Regulatory Authority (CRA), which Karnataka opposes strongly.

On the expiry of the six-week deadline, the Centre sought extension of time till the completion of the electoral process in Karnata for submission of the Scheme. Tamil Nadu filed a contempt petition against the Centre for failure to act within the deadline.

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During Thursday’s hearing, the court directed the Karnataka government to respond on how much of the four TMC of water it can release by month end. It also sought response from the Centre on the steps taken by it since the pronouncing of the judgement for putting in place a scheme for implementing its order on the sharing of Cauvery water among Karnataka, Tamil Nadu, Kerala and Puducherry.

In the course of the hearing, the court asked Karnataka to release 4 TMC of water by Monday.

The court said that even if the Centre has not framed the scheme, Karnataka, under the Cauvery Water Dispute Tribunal award, was obliged to make monthly releases to Tamil Nadu.

The court directed the next hearing of the matter on Tuesday. (IANS)

 

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