December 3, 2022

Defaulter and former billionaire Vijay Mallya was arrested in London in 2017 and faces extradition.

Banks in India acquired Rs 71.82 billion ($967 million) by promoting defaulter and former billionaire Vijay Mallya’s stake within the United Breweries Ltd, in line with a press release by the Enforcement Directorate.

The shares had been seized by the Enforcement Directorate, after banks alleged that Vijay Mallya had defrauded them. The bulk of the shareholding in United Breweries value Rs 58.25 billion had been bought right this moment, whereas Rs 13.57 billion had been recovered in 2019. The remaining Rs 8 billion of shares are anticipated to be bought within the subsequent two days, the probe company stated.

Vijay Mallya, who’s often known as the “King of Good Times” within the nation, was arrested in London, UK, in April 2017 and faces extradition. A clutch of 17 banks accuse him of willfully defaulting on greater than Rs 91 billion in debt amassed by Kingfisher Airlines — a full-service service he based in 2005 that was shut down seven years later. A willful defaulter refuses to repay loans regardless of having the means to take action.

Massive unhealthy loans have been the largest drag on progress for banks with protracted authorized and regulatory proceedings including to sluggish recoveries. As effectively as Vijay Mallya, the Enforcement Directorate has additionally seized belongings beneath the cash laundering act from two different former billionaires Nirav Modi and Mehul Choksi.

The complete belongings seized from the three defaulters are value Rs 181.7 billion (Rs 18,170.02 crore), about 80 per cent of the entire loss for banks, the Enforcement Directorate stated.

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