InvestorQ : Will India be able to recover on Vijay Mallya's default payment?
shivangi Arora made post

Will India be able to recover on Vijay Mallya's default payment?

Answer
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1 year ago


Probably Yes, because the UK home secretary has ordered Vijay Mallya’s extradition. Indian government has first requested for extradition to the British high commission almost two years ago. This case is all about Kingfisher Airlines defaulting on loans amounting to Rs 9,000 crore taken from various Indian banks. According to Bussines Insider, Rs.1600 Crore was lent by SBI, PNB lent Rs 800 crore, IDBI has lent Rs 800 crore, Bank of India has lent Rs.650 crores, Bank of Baroda has lent Rs. 550 crore, United Bank of India has given loan of Rs 430 crore, UCO Bank loan amount is Rs 320 crore, Corporation Bank Rs 310 crore, State Bank of Mysore Rs 150 crore, Punjab & Sind Bank Rs 60 crore, Indian Overseas Bank Rs 140 crore, Federal Bank Rs 90 crore, Central Bank of India Rs 410 crore, Axis Bank Rs 50 crore.

Banks had initially gave time and so did reconstruction of loan in a view that Vijaya Mallya can repay the debt. However, later the Vijaya Mallya not only defaulted on repayment of loan but also went exiled from India to UK. Banks could recover only Rs. 963 crore from the security provided by Vijay Mallya, and Indian government expect to recover the remaining amount from UK assets. This is the reasons UK home secretary has ordered Vijay Mallya’s extradition, against which Vijay Mallya can also file an appeal. So lets see what will be appeal and result.


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diksha shah answered.
1 year ago


I think yes because the UK High Court has rejected Vijay Mallya's extradition appeal. This news seems a step close to bring the fugitive businessman back to India. He is facing money laundering and violation of Foreign Exchange Management Act (FEMA). UK Home Secretary Sajid Javid had earlier order to extradite Vijay Mallya to India, against which Mallya had appealed in UK High Court. Now, the same decision had come from UK High Court, so the return of Vijay Mallya is almost sure and we can hope for a recovery of Rs 9,000 crore loan, which he has defaulted on Indian banks. However, Mallya has 5 business days wherein his legal team can apply for a renewal application for oral consideration. If his appeal is rejected further, then there will be no appeal process, thereafter.