Kingfisher Loan Recovery Will Be Led By SBI

6200 crore to be recovered from Vijay Mallya, Kingfisher loan recovery will be led by SBI
Vijay Mallya, who fled the country after embezzling crores of rupees from banks, has got another setback. A consortium of banks in the country led by State Bank of India (SBI) is going to sell its stake in three financial companies and recover more than Rs 6200 crore from Kingfisher.
Vijay Mallya, who fled the country after embezzling crores of rupees from banks, has got another setback. A consortium of banks in the country led by State Bank of India (SBI) is going to sell its stake in three financial companies and recover more than Rs 6200 crore from Kingfisher. Vijay Mallya owes 9000 crores to banks and his interest.

Shares to be sold on June 23

Mallya’s shares in United Breweries Limited, United Spirits Limited and McDowell Holdings Limited will be sold in a block deal on June 23. Kingfisher Airlines, which is owned by Mallya, has been closed since October 2012. Mallya has been declared a fugitive economic offender in the case of loan default and bank fraud in 2019. He is currently fighting a case in a British court to avoid his extradition to India.

Mallya is absconding since March 2016

If Mallya’s shares are sold, it will be the banks’ first major recovery in the Kingfisher Vijay Mallya case. The loan given to Kingfisher became a non-performing asset (NPA) in late 2012. Mallya left the country in March 2016. He is accused of cheating 17 banks.

The sale of shares will be under surveillance

According to reports, the sale of shares will take place under the supervision of the Debt Recovery Tribunal (DRT) of Bangalore, which has authorized the recovery officer to sell the shares to recover the loan of Rs 6203 crore. If the shares are not sold under the block deal, then the banks can sell the shares through the block or retail. Apart from SBI, the banks giving loans to Kingfisher include PNB, IDBI Bank, Bank of Baroda, Allahabad Bank, Federal Bank and Axis Bank.

On June 23, the recovery officer will sell 4.13 crores of United Breweries, 25.02 lakhs of United Spirits and 22 lakhs of McDonald’s Holdings under the block deal. According to the report, if the shares are not sold under the block deal, then it will be sold through bulk or retail mode from June 24.

Leave a Reply

Your email address will not be published. Required fields are marked *