Published: Fri, January 20, 2017
Economy | By Melissa Porter

Banks get green light to recover Kingfisher dues

Banks get green light to recover Kingfisher dues

Tribunal presiding officer K Srinivasan delivered the verdict byallowing the pleas of the banks for a direction to recover theamount due to them by the Airline.

In a fresh jolt to the fugitive liquor baron Vijay Mallya, India's Debt Recovery Tribunal (DRT) today has passed an order allowing the consortium of bankers led by State Bank of India to recover their debt of Rs 6,203 crore from beleaguered businessman.

The lenders had moved the DRT in 2013 to recover dues from the defunct airline. The consortium of banks had also moved a petition in the Karnataka High Court with a set of appeals and the DRT took up the case on a fast-track basis after the Supreme Court directed it to do the same.

The DRT Judge said in the order that he was allowing the bankersto recover the outstanding loan amount Rs 6203 crore at the interestrate of 11.5 per cent per annum from Kingfisher Airlines, and thecompanies owned by Mr Mallya including UBHL and Kingfisher Finvest. SBI had a year ago asked the DRT to cancel his passport and had asked all his assets including the $75 million payment received for resigning from the board of United Breweries Limited to be attached.

But by then Diageo had paid $40 million and the remaining money is to be paid over a period of five years subject to fulfilment of certain conditions.

The ruling is expected to further tighten the noose around Mallya who has been living in United Kingdom (UK) since March 2016.

Earlier, in 2015, SBI and Punjab National Bank had declared Mallya, Kingfisher Airline and its holding firm United Breweries (Holdings) as "wilful defaulters".

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