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- Vijay Mallya SBI Bank Loan Amount; State Bank Of India On Fugitive Businessman Kingfisher Airlines Shareholdings
Mumbai14 minutes ago
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There is a news to increase trouble for fugitive businessman Vijay Mallya. The country’s largest state-run bank SBI will sell the shares of three of its companies for debt recovery. It is expected to recover around Rs 6,200 crore. This loan was taken by Vijay Mallya for his airline company Kingfisher.
Shares of United Breweries Limited, United Spirits Limited and McDonald Holdings Limited will be sold by SBI in this auction to be held on June 23. If the share sale is successful, this would be the first instance of such debt recovery. In 2012, it became an NPA out of debt.
Interest will also be recovered along with the principal amount
According to a report by Moneycontrol, the shares will be sold under the Debt Recovery Tribunal (DRT) Bangalore. Under this, the Recovery Officer will recover Rs 6,203 crore plus cost and 11.5% interest from June 25, 2013 till the date of recovery.
Most United Spirits shares will be sold
On June 23, the recovery officer will sell 4.13 crore United Breweries, 25.02 lakh United Spirits and 2.2 million McDonald’s Holdings under the block deal. According to the report, if the shares are not sold under the block deal, then it will be sold through bulk or retail mode from June 24.
Mallya out of India since March 2016
Mallya’s airline company Kingfisher has not been able to fly since October 20, 2012 due to the financial crisis. Vijay Mallya has been declared a fugitive economic offender in January 2019 for non-payment of loans and allegedly defrauding banks. Mallya left India on 2 March 2016.
About 9 thousand crore rupees stuck in 17 banks
Vijay Mallya has paid about 9 thousand crore rupees from 17 banks and their interest has not yet been paid. This includes SBI including Punjab National Bank, IDBI Bank, Bank of Baroda, Allahabad Bank, Federal Bank, Axis Bank.