InvestorQ : When is the sale of impounded shares of Vijay Mallya likely to be done by SBI and the other banks?
ishika Banerjee made post

When is the sale of impounded shares of Vijay Mallya likely to be done by SBI and the other banks?

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6 months ago
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SBI as the head of the lending consortium to Kingfisher Airlines plans to sell shares worth Rs.6,200 crore of United Spirits and other group companies that were impounded from the demat accounts of Vijay Mallya. These dues pertain to the loans on which Kingfisher Airlines had defaulted and where the ED is still fighting a case to get Vijay Mallya extradited from London back to India to face the legal process in the country where he defaulted.

If the share sale happens, this could be the first instance of banks making a significant recovery in the Kingfisher case after the loan turned bad in late 2012 after the airline was grounded. Mallya owed Rs.9,000 crore at that point of time although the sum has gone up much higher since then including interest and penalties. Apart from SBI, other lenders include PNB, IDBI Bank, BOB, Allahabad Bank, Axis Bank etc.

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