State Bank of India, the leader of consortium of 13 banks with exposure to economic fugitive Vijay Mallya, sees the UK’s High Court enforcement order in the Vijay Mallya case as a “good positive step”.
This would bolster SBI’s efforts to recover the debts due to the 13 banks by the Vijay Mallya Group, Arijit Basu, Managing Director, SBI, said here on Friday.
“We are very confident that with this kind of worldwide asset freeze order we will be able to go after all the assets the Vijay Mallya Group has abroad so that we could maximise our recovery,” Basu said.
Stating that SBI doesn’t want the Indian banking system to be “shortchanged”, Basu said that SBI would with the help of its overseas counsel go about enforcing the worldwide asset freeze order.
“We are very hopeful that going forward we will be able to recover our money. That is what we intend to do. We are extremely happy that this has been a good coordinated effort by the government and investigative agencies”, he said.
Till date, the SBI-led consortium has been able to recover about Rs 970 crore of India-based assets of Vijay Mallya Group. The total exposure (including interest on loans outstanding) of the 13 consortium banks to the Vijay Mallya Group is estimated at about Rs 13,000 crore.
Basu said that SBI has already appointed valuers to look into the valuation of Vijay Malaya’s properties in London and other countries abroad. This is perhaps the first time that Indian banks are going after the assets located abroad of a wilful defaulter from India.