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Recovery of Rs. 792 crore by SBI led consortium by selling Vijay Mallya’s Shares

The Debts Recovery Tribunal (DRT) led a consortium of banks that sold shares (of Rs. 792.12 crore) of Vijay Mallya on behalf of SBI. The shares were confiscated by the Enforcement Directorate in a money laundering case to recover the loan money. The ED has also given them NOC for the same. Before that Rs. 5824.50 crore and Rs. 1357 crore were returned respectively in two different occasions by selling Maya’s shares. Also, the bank recovered 81% of their claim of Rs. 9900 crore against Vijay Mallya. The majority of shares comprised of United Breweries Ltd. and United Spirits Ltd that Mallya owned in the name of 7 different companies. Earlier the ED had confiscated these shares in the case after which on the exchange record the ED was the owner of their shares. With the permission of the court recently, the ED had transferred these shares in the name of the SBI led consortium after ensuring that Heineken in principle had agreed to purchase most of the shares. Under the law, once the court declares an accused a fugitive offender, the government agency can confiscate the assets even the ones which are not associated with the crime and post the court confirmation it becomes a property of the government that can be an auction to recover the bank loss. Mallya took bank loans on a personal guarantee. A corporate guarantee of UB Holdings and an inflated brand guarantee of now-insolvent Kingfisher airlines. The loan was taken for operating expenses of Kingfisher Airlines but was used for other purposes including personal properties and aeroplane of Vijay Mallya

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