Banks consortium gets over Rs 792 crore in Vijay Mallya loan default case: ED

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The State Bank of India (SBI)-led consortium that lent loans to Vijay Mallya on Friday received Rs 792.11 crore in its accounts after some shares were sold, the Enforcement Directorate (ED) said.

With this, the ED claimed that the banks and the government exchequer have realised 58% out of the total fraud perpetrated in two of the country’s biggest criminal bank loan default cases till date.

Apart from the Mallya case, the other case pertains to over Rs 13,500 crore alleged bank loan cheating in the Brady House (Mumbai) branch of the Punjab National Bank that is alleged to have been orchestrated by  Nirav Modi and his uncle Mehul Choksi.

“Today, SBI-led consortium has realised Rs 792.11 crore by sale of shares in Kingfisher Airlines or the Vijay Mallya case. These shares were handed over by the Enforcement Directorate to the consortium,” the central probe agency said in a statement issued here.

These shares were earlier attached under the Prevention of Money Laundering Act (PMLA) by the ED as part of its criminal investigation into the case.

Last month too, the banks consortium had realised more than Rs 7,181 crore in the Mallya case after a similar sale of attached shares.

Mallya, who fled to the UK, is being probed by the ED and the CBI in connection with an alleged Rs 9,000 crore bank fraud linked to the operations of his now-defunct Kingfisher Airlines.