Vijay Mallya
Vijay MallyaReuters

Lender banks have said their negotiation with Vijay Mallya has reached a road-block even as the Enforcement Directorate (ED) seeks to confiscate the liquor baron's assets. The banks do not want to be seen as pacifying and hence are yet to accept Mallya's latest resettlement offer of Rs. 6,800 crore.

However Mallya's associates have said he would not stop negotiating.

"It is in the bank's interest to get their money back and incase they agree to a settlement, the banks can request the courts to enable Mallya's return," a source was quoted as saying by the Economic Times.

Bankers want Mallya to disclose his assets under oath since they are unsure about the reliability of the offer made. "Right now, we do not know his paying capacity," a banker was quoted as saying by the publication.

In the last week of April, the Supreme Court of India had directed Mallya to disclose details of assets owned by him and his family members in India and overseas. This followed a 41-page affidavit filed by the businessman as he maintains that due to his status of being a non-resident Indian (NRI), he was not obliged to reveal details of his assets.

The ED is reportedly considering the idea of freezing Mallya's overseas assets, which would require India to use its bilateral ties with the U.K. As of now, that remains a difficult task, ET added.

Delhi court sends notice to Mallya

The Enforcement Directorate, which is a specialised financial investigating agency under the Ministry of Finance in India, had filed a plea seeking removal of "exemption of appearing in court" granted to Mallya in a case of evading summons, Press Trust of India reports.

A Delhi court on Tuesday issued a notice to the businessman who owes over Rs. 9,000 crore to the consortium of banks.  

"Issue notice to the counsel for the accused (Mallya) for May 20," PTI quoted the court's order as saying. The ED said that the former liquor baron's presence was necessary for the on-going trial and has sought the court's direction for having him present for every hearing.