Indian banks have recovered around Rs 7,182 crores from former Indian billionaire Vijay Mallya who fled to the UK after defaulting on huge loan payments.
On June 23, the banks sold 15 per cent of Vijay Mallya's shares in United Breweries to Heineken international and recovered Rs 5,800 crore. Earlier, the banks had sold Rs 1,357 crore worth of Mallya's shares in United Breweries (UB) and United Spirits Ltd (USL). They are also planning to sell another Rs 800 crore worth of shares by June 25, according to media reports.
The banks have recovered Rs 7,1 82 crore from Vijay Mallya so far through sale of his shares. The recovered amount is a little over 70 per cent of the total amount that Mallya owes to the lenders.
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During the first decade of this century, Mallya had borrowed over Rs 9,100 crore from various Indian banks. A few years after the loan amount was granted to the liquor king, his Kingfisher Airline was deemed as a Non-Performing Asset (NPA). Two years after this, Mallya decided to flee the country when the banks started demanding repayment.
A clutch of 17 banks, led by the SBI took control of Mallya’s assets in India but were unable to sell them and recover their money since a case had been filed in court. The assets were being examined by the Enforcement Directorate (ED) and the court had prohibited banks from selling the securities in Mallya’s name.
However, a special court designated under the Prevention of Money Laundering Act (PMLA) granted the bank consortium the rights of United Breweries Holdings Ltd (UBHL). This prompted the banks to sell UBHL shares.
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On June 8, the Competition Commission of India cleared the proposal of additional stake buy by Heineken in United Breweries, making the path clear.
Meanwhile, Heineken NV became the second-largest beer producer in the world after buying 39.6 million shares of UBHL. Heineken also took control of UBHL, cementing its position in a vast market where beer consumption could grow from a low base.
The Dutch brewer said on Wednesday it had bought 39.6 million shares in UBL to push its holding to 61.5% from 46.5% before.
Prior to this, there have been multiple attempts to sell his real estate assets in auctions and other forms of dealing. However, most of the attempts have been un-fruitful. In 2017, after three failed auctions, banks have finally managed to sell the Kingfisher Villa in Goa to an actor for Rs 73 crore through a private treaty.
