Certain real estate assets and securities of fugitive business tycoon Vijay Mallya will be auctioned by banks to recovers the debts.
This decision was taken by a Prevention of Money Laundering Act (PMLA) court on Saturday.
“The PMLA court has given permission to banks to sell certain real estate properties and securities that belonged to disgraced tycoon Vijay Mallya to recover dues loan amount of over Rs. 5,600 crores. It was earlier under the Enforcement Directorate” stated the Managing Director of Punjab National Bank, Mallikarjuna Rao.
“Now the lead bank will sell those properties. PNB does not have much loan exposure in Kingfisher, but we will get our due share whatever once lead bank to realize.” Rao further stated.
The fugitive business tycoon, Vijay Mallya is accused in a bank loan default case of over Rs. 9,000 crores. This involves his defunct Kingfisher Airlines and is presently in the United Kingdom.
He was declared as a fugitive economic offender in January 2019 by a special court in Mumbai.
The 65-year-old has gone through and exhausted the full legal procedures available to him to fight the government’s effort to extradite him to India to face charges of defrauding a consortium of banks of more than a billion dollars in relation to the collapse of Kingfisher Airlines in 2013.