Debt Recovery Tribunal allows bank to recover debt from Mallya

The Debt Recovery Tribunal (DRT) on Thursday allowed Kingfisher Airlines' consortium of 17 banks to start the proceedings to recover over Rs. 6,000 from liquor baron Vijay Mallya.

The DRT allowed original application of the bankers (i.e bankers can now begin process to recover the amount).

It gave its decision in the favour of the State Bank of India-led consortium of banks.

Earlier in June 2016, the SBI had pleaded before the DRT to grant the recovery certificate for beginning the proceedings against Mallya for recovery of debts from him in the bank loan default case.

Mallya, who is in London since 2 March, 2016, owes Kingfisher Airlines' 17-bank consortium over Rs 6,000 crore. The Debt Recovery Tribunal has now given the banks led by State Bank of India (SBI) a go-ahead to start the recovery of Rs 6,203 crore owed to them.

Kingfisher Finvest's counsel had submitted that the company was neither a party nor a guarantor for the loans taken by Kingfisher Airlines, United Breweries Holding Limited (UBHL) or Mallya and just was a pledgor, and hence as per existing laws action cannot be initiated against the pledgor.

-ANI