DRT allows SBI-led consortium to recover dues from Mallya
DSIJ Intelligence / 19 Jan 2017
The Debt Recover Tribunal (DRT) in an important ruling on Thursday allowed SBI-led consortium of lenders to recover Rs 6,203 crore from absconding Vijay Mallya and his entities.
The Debt Recover Tribunal (DRT) in an important ruling on Thursday allowed SBI-led consortium of lenders to recover Rs 6,203 crore from absconding Vijay Mallya and his entities.
In a booster to lenders, DRT allowed the consortium to petition against the lender. The tribunal has ordered a payment of Rs 6,203 crore with an interest rate of 11.5 per cent by KFA, United Breweries Holdings, Kingfisher Finvest and also from Vijay Mallya.
The DRT order also states that now, the banks can go after Mallya, his company and also his personal assets to recover their respective dues. Earlier in June 2016, the SBI-led consortium had pleaded before the tribunal to grant the recovery certificate for initiating the proceedings against Mallya for recovery of debts in the bank loan default case.
The order will give banks more teeth to pursue recovery process since the erstwhile promoter has been residing in London ever since the banks moved courts in case of loan defaults.
Banking stocks are likely to be in focus on Friday, January 20 in the backdrop of above developments.
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