SBI consortium gets Rs792 cr in Mallya loan default case

Tribune News Service

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New Delhi, July 16

The Enforcement Directorate (ED) today said a consortium of banks led by SBI has realised Rs 792.11 crore by sale of shares in connection with a loan fraud case involving Kingfisher Airlines and Vijay Mallya.

Officials said the ED had handed over shares with a market value of the same amount to the banks, which had earlier also realised Rs 7,181.50 crore by liquidating assets handed over to them.

58% loss recovered

The ED has handed over the shares worth Rs792 crore to the consortium of banks, which had earlier also realised Rs7,181.50 crore by liquidating assets handed over to them

The ED claimed so far assets worth 58% of total loss to the banks have either been handed over to banks or confiscated by the government

The ED has to date transferred assets worth Rs 12,762.25 crore to the public sector banks and confiscated assets of Rs 329.67 crore, the agency said, claiming that so far assets worth 58% of total loss to the banks have either been handed over to banks or confiscated by the Government of India.

Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded banks by siphoning off funds through their companies, which resulted in total loss of Rs 22,585.83 crore to the commercial lenders.

“In addition, Rs 1,060 crore worth assets have been allowed to the banks by the Fugitive Economic Offences Court in PNB bank fraud case involving Nirav Modi and Rs 329.67 crore has been confiscated under the provisions of Fugitive Economic Offender Act ,” said a senior official.