The Debt Recovery Tribunal has asked bankers to begin the recovery process of £620.3 million at 11.5 per cent interest from liquor baron Vijay Mallya and his companies. A consortium of bankers led by the State Bank of India, has been fighting the case at different courts across the country, and are rejoiced by the order. They believe the order is a victory for them and the crossing of yet another hurdle for recovery through sale of assets. The banks had previously tried to auction Mallya's bungalows and private jet without success.
"I hereby ask the bankers to start the process of recovery of £620.3 million at the interest rate of 11.5 per cent per annum from Mallya and his companies, including United Breweries Holdings, Kingfisher Finvest and Kingfisher Airlines," said DRT presiding officer K Sreenivasan. He also disposed of as many as 20 interlocutary applications, including several by banks, Mallya and his companies. The proceedings have been going on for over three years, during when, Mallya had several run ins and breach of trust issues with DRT, courts, and the bankers. Mallya had given an oral undertaking to the DRT in 2014, that he would not alienate assets of himself and his indebted compaines, UBHL and KFA.
SBI had filed three other applications too, including one seeking Mallya's arrest and impounding his passport for "defaulting" on loans. Mallya moved to Britain in March last year after being pursued in courts by banks. Government authorities have been trying to have Mallya -who denies being an absconder - deported back to the country by Britain.
