SBI Seeks DRT Certificate To Recover Debts From Mallya

Posted By: Religare
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The State Bank of India pleaded before the Debt Recovery Tribunal for granting recovery certificate to start the proceedings against liquor baron Vijay Mallya to recover debts from him in the alleged bank loan default case, reported PTI.

SBI Seeks DRT Certificate To Recover Debts From Mallya
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"We have not been able to trace the money (USD 40 million) which was transferred to Mallya by Diageo Plc and subsidiaries. Therefore, we request the honorable Tribunal to grant us recovery certificate to start proceedings against Mallya to recover our debts from him," SBI Counsel Nagananda said as per the media report.

He made the plea while making a submission on its original application seeking recovery of debts from Mallya and his companies before DRT Presiding Officer C R Benakanahalli.

DRT had on March 7 passed an order stalling the USD 75 million transaction between Diageo Plc and its subsidiaries and Mallya.

Making submissions on Kingfisher Finvest India versus the bank case, Nagananda submitted the defendants - Mallya and Kingfisher Airlines Limited - have not filed any denial against allegations of fraud made against them, which makes the bank's case strong to recover debts from Mallya and his companies.

"Mallya and Kingfisher have not submitted any denials against the allegations of fraud made by us against them and hence it makes our case strong to recover debt," he said.

Nagananda contended Kingfisher Finvest was fully owned by Mallya, in contrast to the submissions made by the company's counsel in the Tribunal earlier.

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.

Nagananda also said the bank has been making sincere and genuine efforts to recover debt from Mallya and his entities but he had been thwarting the bank's efforts to take over his properties by seeking adjournments in courts.

Hence, Kingfisher Finvest India's pleas could be heard at the disposal stage of the final hearing, he said.

Mallya, whose now-defunct group company Kingfisher Airlines owes over Rs 9,000 crore (Rs 90 billion) to a consortium of 17 banks led by SBI, had left the country on March 2 and is in the UK.

The beleaguered businessman has been declared a proclaimed offender by a special PMLA court in Mumbai on a plea by the Enforcement Directorate in connection with its money laundering probe against him in the alleged bank loan default case.

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