Start recovery of loans from Mallya: DRT

Bengaluru, January 19

In yet another blow to 'wilful defaulter' Vijay Mallya, the Debt Recovery Tribunal today ordered the SBI-led consortium of banks to start the process of recovering over Rs 6,203 crore, at 11.5 per cent annual interest rate, from the embattled tycoon and his companies in the Kingfisher Airlines case.

“I hereby ask the bankers to start the process of recovery of Rs 6203,35,03,879 crore and 42 paise at the interest rate of 11.5 per cent per annum from Mallya and his companies, including UBHL, Kingfisher Finvest and Kingfisher Airlines," DRT Presiding Officer K Sreenivasan said in his order here.

At the jam-packed, newly rented space of DRT, which was inaugurated only this morning, the Presiding Officer disposed of 20 Interlocutory Applications (IAs), including several by Mallya and his firms.

The lenders had moved DRT in 2013 to recover dues from the defunct airline. The SBI had filed three other applications, including one seeking Mallya's arrest and impounding of his passport, for 'defaulting' on loans.

Sreenivasan decreed that if, in spite of the sale of the properties mentioned in schedules, the OA (the Original Application) amount was not fully realised, the applicant bank was at liberty to proceed against the person and other properties of the defendants as required under law and also as advised.

In the event of failure of defendants to pay the OA amount, the applicant bank was at liberty to sell the hypothecated, mortgaged, movables and immovable properties described in schedule of the main petition, according to law as sought by the applicant bank, he said. PTI