Bengaluru: State Bank of India (SBI) has reportedly sought arrest of Vijay Mallya and seizure of his passport, after it approached the Debt Recovery Tribunal (DRT) seeking action against the UB Group promoter for defaulting on loans.
Top state run lender, State Bank of India, which heads the consortium of 17 lenders for the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal (DRT) in Bengaluru against the airline’s chairman Mallya in its bid to recover over Rs. 7,000-crore dud loans from him and to secure a first right on the $75 million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman last week, reported NDTV profit.
The urgency to move DRT was felt because Mallya who has already been declared by the bank as a willful defaulter, has decided to leave the country and settle down in London.
As part of a deal, Diageo said it would pay $40 million immediately to Mallya with the balance being payable in equal installments over the next five years.
The 17-member lenders consortium led by SBI has also decided to auction Kingfisher House in Mumbai on March 17 this year in a bid to recover a part of Rs. 6,963 crore debt due from Kingfisher. The lenders since January 2012 recovered around Rs. 1,200 crore by selling pledged shares of group companies and other physical assets.
Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, Uco Bank and Dena Bank among others.
