A consortium of banks led by the State bank of India (SBI) have begun firming up plans for the sale of fugitive economic offender Vijay Mallya's assets worth Rs 5,646.54 crore, reports Economic Times.
The executives from the banks are said to have met Enforcement Directorate (ED) officials recently in this regard. The development comes days after the Prevention of Money Laundering Act (PMLA) court's nod for restoration of Mallya's assets with the banks for recovery of dues.
It is likely that if things go as planned the banks could go on to recover as much as about 91 per cent of the principal amount.
"While the movable and immovable assets are worth Rs 5,646.54 crore, the quantifiable loss suffered by the bank is Rs 6,203 crore," an official was quoted in the report as saying.
The assets include Mallya's 16.165 per cent stake in United Breweries which is valued at Rs 5,500 crore. The consortium of lenders is said to be in the process of appointing SBI Capital markets to sell Mallya's shares via large block deals in the Indian bourses between the first and second quarters of the ongoing financial year.
The ED has already transferred 4.13 crore equity shares of the company to the Demat account of the recovery officer of the Debt Recovery Tribunal (DRT).
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.