Banks working closely with UK to recover Vijay Mallya dues: SBI MD

SBI MD Arijit Basu said the banks hope to recover a 'significant part' of the money owed to them by Mallya

Indian banks are working very closely with the UK authorities to recover maximum out of assets owned by Vijay Mallya after a British court allowed them to search and seize properties of the fugitive liquor baron, SBI MD Arijit Basu said on Friday.  

"We are very happy with the court order and with this kind of order we should be able to go after this assets," he told reporters.

Without giving a specific number, he said, "We hope to recover significant part (of) our money."     

The UK Enforcement order is a worldwide freezing order and Indian banks are looking at recovering the entire debt, he said, adding that banks are working very closely with the authorities and have appointed a valuer.

SBI is the leader of the consortium of 13 banks that had lent money to Mallya's now defunct Kingfisher Airlines. 

Asked about recovery in India, Basu said that the consortium has recovered Rs 9.63 billion (Rs 963 crore) from the auction of Mallya's Indian assets.
 

Recently, a UK High Court judge issued an enforcement order in favour of a consortium of 13 Indian banks, seeking to recover funds owed to them by beleaguered liquor baron Mallya who is fighting extradition to India on fraud and money laundering charges worth nearly Rs 90 billion (Rs 9,000 crore).
 

It permits the officer and his agents entry to Ladywalk and Bramble Lodge in Tewin, Welwyn, where Mallya is currently based. However, it is not an instruction to enter, which means the banks have the option to use the order as one of the means to recover estimated funds of around 1.145 billion pounds.