The Debt Recovery Tribunal on Thursday passed orders in the banks vs Vijay Mallya case and allowed the former to petition against the liquor baron.
The Debt Recovery Tribunal on Thursday passed orders in the banks vs Vijay Mallya case and allowed the former to petition against the liquor baron. It gave its decision in the favour of the State Bank of India-led consortium of banks. The DRT further initiated the recovery proceedings against Mallya-owned Kingfisher Airlines. According to reports, the DRT might also initiate the attachment of Mallya’s properties. The banks are to recover Rs 6,203 crore in addition to an interest rate of 11.5% per annum.
Earlier in June 2016, the SBI had pleaded before the DRT to grant the recovery certificate for the starting off proceedings against Mallya for the recovery of debts from him in the bank loan default case. SBI Counsel Nagananda had then told PTI, “We have not been able to trace the money (USD 40 million) which was transferred to Mallya by Diageo Plc and subsidiaries. Therefore, we request the honourable Tribunal to grant us recovery certificate to start proceedings against Mallya to recover our debts from him,” He had made the plea while making a submission on its original application seeking recovery of debts from Mallya and his companies before DRT Presiding Officer C R Benakanahalli.
Kingfisher Finvest’s counsel had submitted that the company was neither a party nor a guarantor for the loans taken by Kingfisher Airlines, United Breweries Holding Limited (UBHL) or Mallya and just was a pledgor, and hence as per existing laws action cannot be initiated against the pledgor. Mallya, whose now-defunct group company Kingfisher Airlines owed over Rs 9,000 crore (Rs 90 billion) to a consortium of 17 banks led by SBI, had left the country on March 2 and was last reported to be in the UK.