The largest state-owned lender State Bank of India (SBI) is laying out action against absconding liquor baron and said that the bank has recovered close to Rs 950 crore for the entire banking sector.
The total exposure of banks on loans disbursed to Kingfisher Airlines is at 6,500 crore, said Pallav Mohapatra, deputy managing director of SBI, adding that the bank has recovered Rs 950 crore by selling one property in Goa and got the attachment of deposits in various banks of Mallya and his associates.
A UK High Court judge on Thursday has issued an enforcement order allowing a consortium of 13 Indian banks to seek and recover funds worth Rs 9,000 crore owed to them by liquor baron.
Mohapatra said that the process to recover dues from Mallya began in November 2017.
"The bank's legal counsel advised us to pursue Mallya's bankruptcy, therefore, the consortium of banks decided to go for bankruptcy process against him," Mohapatra said.
The valuation of Mallya's foreign property has not done yet, he said.
“There will be recovery but I cannot right away say the amount but the recovery will be there and we are quite hopeful that the recovery to the bank plus realiSation by the enforcement agency will be much more,” added Mohapatra.