Banks can sell Vijay Mallya's properties to recover dues

Armed with court order, a consortium of lenders led by SBI can now sell certain real estate properties and securities belonging to fugitive Vijay Mallya to recover loans turned bad with failure of Kingfisher Airlines.  

A consortium of 11 banks that gave Mallya loans, led by State Bank of India (SBI), had approached a special Prevention of Money Laundering Act (PMLA) court seeking restoration of his properties seized by the Enforcement Directorate.  The special PMLA court in Mumbai on Tuesday allowed the restoration of properties worth Rs 5,646.54 crore to



banks.

According to an official of lead bank SBI, symbolic possession of properties mentioned in the order would be taken by lenders after following due legal process.

Recovery process in banks are guided by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest  Act, 2002, the official said, adding that auction or sale of those properties would be done as per the guidelines in due course of time.  SBI has the highest exposure of Rs  1,600 crore out of original loan of Rs 6,900 crore to the defunct Kingfisher Airlines.