Mallya's $10 million Trump Plaza deal struck just last month
April 23, 2016 12:17
As Indian banks queued up to collect nearly a billion dollars owed by his Kingfisher Airlines, Vijay Mallya struck a deal last month that would allow him to retain an apartment in the famous Trump Plaza in Manhattan. For $10 million.
The penthouse was picked up by the liquor baron as part of a series of purchases he made in the glitzy building through 2010 -- through the year, he acquired three apartments, including a penthouse in the name of his daughter Tanya.
At the time, he paid $4.6 million dollars or Rs. 21 crore ($1 = Rs 46 as per the exchange rate then) according to documents of the New York Department of Finance.
But last year, Mallya received a notice from Trump Plaza reminding him that he owed $10.1 million to retain the penthouse in his daughter's name.
The amount was Mallya's share in a settlement reached between Trump Plaza (a cooperative, where flat-owners are shareholders) and the original owners of the land on which the tower was built.
The Trump Plaza settlement comes as the Enforcement Directorate has alleged that Mallya used loans given to his now-defunct Kingfisher Airlines to buy properties abroad. The agency is in particular probing a Rs 900 crore loan Kingfisher received from state-run IDBI Bank in 2009, a year before the Trump Plaza purchases.
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