SBI seeks Vijay Mallya’s arrest in Kingfisher loan default case - Hindustan Times
close_game
close_game

SBI seeks Vijay Mallya’s arrest in Kingfisher loan default case

PTI | By, Mumbai
Mar 03, 2016 10:29 AM IST

Top state-run lender SBI on Wednesday sought to arrest Vijay Mallya, and also impound his passport, as the bank approached the Debt Recovery Tribunal seeking action against the UB Group promoter for defaulting on loans.

Top state-run lender SBI on Wednesday sought to arrest Vijay Mallya, and also impound his passport, as the bank approached the Debt Recovery Tribunal seeking action against the UB Group promoter for defaulting on loans.

The SBI, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal in Bengaluru against the airline’s chairman Mallya in its bid to recover over Rs 7,000-crore dud loans from him.(Sonu Mehta/HT Photo)
The SBI, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal in Bengaluru against the airline’s chairman Mallya in its bid to recover over Rs 7,000-crore dud loans from him.(Sonu Mehta/HT Photo)

The State Bank of India (SBI), which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal in Bengaluru against the airline’s chairman Mallya in its bid to recover over Rs 7,000-crore dud loans from him.

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

According to sources, SBI has moved four applications at the DRT, seeking impounding Mallya’s passport, getting him arrested, securing the lenders’ first right on the payout from Diageo and getting full disclosure of his assets in the country and abroad.

The immediate objective of the lenders moving the DRT is to secure a first right on the US$75-million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman last week.

An SBI official confirmed to PTI that they have moved the DRT seeking a right on the severance package, as the borrower Mallya, who has already been declared by the bank a wilful defaulter, has decided to leave the country and settle down in London.

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. Since January 2012, the loan was not serviced.

Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, Uco Bank and Dena Bank among others.

Last year, SBI declared Mallya a wilful defaulter. Last month, Punjab National Bank had also declared him, his group holding company United Breweries Holdings and the long-defunct Kingfisher Airlines as wilful defaulters.

As part of a deal, Diageo said it would pay US$40 million immediately to Mallya with the balance being payable in equal instalments over the next five years. It will also absolve Mallya of all liabilities over alleged financial lapses at the company founded by his family.

Tell us what your First Vote will stand for in a short video & get a chance to be featured on HT’s social media handles. Click here to know more!

Get Current Updates on India News, Elections 2024,, Election 2024 Date along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, May 22, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On