Vijay Mallya moves Karnataka HC seeking loan recovery details, banks issued notice
Bengaluru: Fugitive liquor baron Vijay Mallya approached the Karnataka High Court on Wednesday seeking direction to banks to provide details of the total amount recovered against loans obtained by him, United Breweries Holdings Limited (UBHL, now in liquidation).
Considering the plea, the High Court has issued notices to concerned banks in this regard.
The bench headed by Justice R. Devadas passed the order issuing notices to banks, and recovery officers and adjourned the matter till February 19.
Senior counsel Sajan Poovayya appearing for Vijay Mallya submitted to the court that the loan amount to be paid was Rs 6,200 crore, whereas Rs 10,200 crore has been recovered so far. In spite of the complete recovery of the loan amount, the process of recovery is continued by the banks and hence the banks should be issued with notices to furnish accounts of the recovered amount.
Further, the counsel argued that no order has been made towards whether a primary amount has been paid or not and requested an interim stay order halting the process of the loan recovery process. It was also prayed that to stay further sales of the petitioner’s assets in possession with them.
Counsel Sajan Poovayya further submitted that, as of date, the recovery officer has confirmed the payment of Rs 10,200 crore. The official liquidator claims that the banks have restored their money. A statement was made on the floor of the Parliament by Union Finance Minister Nirmala Sitharaman that Rs 14,000 crore was recovered, he claimed.
The notice has been issued to officers attached to the Loan Recovery Tribunal of Chennai, State Bank of India, Bank of Baroda, Union Bank of India, The Federal Bank Limited, IDBI Bank Limited, Indian Overseas Bank, Jammu and Kashmir Bank Limited, Punjab and Sindh Bank, Punjab National Bank, UCO Bank, JM Financial Asset Reconstruction Company Private Limited and official liquidator of the UBHL, according to sources.