PNB and SBI now ready to sell Vijay Mallya's properties, securities worth Rs 5,600 crore

A consortium of lenders led by the State Bank of India (SBI) will now be able to sell assets of fugitive businessman Vijay Mallya to recover loans given to the beleaguered Kingfisher Airlines. The consortium of 11 banks had approached the Prevention of Money Laundering Act (PMLA) court seeking restoration of the properties seized by the Enforcement Directorate (ED).   

Punjab National Bank (PNB), one of the consortium members said the PMLA court has given the go-ahead to the consortium to auction the properties in order to recover their dues. 

"PMLA court has given permission to banks to sell certain real estate properties and securities belonged to disgraced tycoon Vijay Mallya to recover dues loan amount of over Rs 5,600 crore. It was earlier under ED," said Mallikarjuna Rao, Managing Director, Punjab National Bank.

"Now the lead bank will sell those properties. PNB doesn't have much loan exposure in Kingfisher, but we will get our due share whatever once lead bank to realize," Rao further added. 

The PMLA court in Mumbai on Tuesday allowed the restoration of properties worth Rs 5,646.54 crore to banks. 

According to reports, the banks will take up symbolic possession of the properties mentioned in the court order following due legal procedure.   

he recovery process is guided by the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, and the sale of those properties would be done as per the guidelines in due course of time.

SBI has the highest exposure to the tune of Rs 1,600 crore out of the original loan of Rs 6,900 crore to the now-defunct airline.