SBI denies any laxity on its part in dealing with Mallya's case

NEW DELHI: India's biggest lender SBI stated on Friday there used to be no laxity on its part in coping with loan default by way of now defunct Kingfisher Airlines of fugitive liquor baron Vijay Mallya.

The feedback by way of State Bank of India (SBI) came after reviews instructed that the financial institution, which used to be the lead lender to Kingfisher Airlines, used to be in February 2016 advised to move the Supreme Court to stop Mallya from fleeing the country however the lenders moved the apex court simplest after the wealthy person had left the country 4 days later.

Mallya warfare: Congress, BJP accuse each other of serving to wealthy person

Rahul Gandhi charged finance minister Arun Jaitley with colluding in the liquor baron's flight from India and BJP hitting again, saying the UPA regime bent over to carve out a "sweet deal" for the fugitive businessman. Earlier, Mallya had claimed that he had had a gathering with Jaitley in Parliament before he fled to London.


Mallya left the country on March 2, 2016 while 13 banks moved the apex court 4 days later in search of its intervention to prevent the businessman from leaving the country.

"State Bank of India (SBI) denies that there has been any laxity on its part or its officials in dealing with loan default cases, including kingfisher Airlines. Bank has been taking proactive and strong measures to recover the defaulted amounts," the lead financial institution stated in a statement.

Mallya has been facing felony court cases for defaulting on loans of more than Rs nine,000 crore from a consortium of 17 banks.

However, Mallya, in an open letter, had defended himself and stated the SBI and other banks had lent him money in spite of realizing about his company's monetary situation. He claimed he used to be being made the "poster boy" for financial institution defaults, despite the fact that the banks had been also culpable.


The Supreme Court had raised some unsavoury questions to the banks that approached. It questioned why loans got to Mallya when he used to be already a defaulter and used to be facing court cases in the court of regulation.


It is to be famous that he had already introduced his aim to shift to the United Kingdom in a statement issued after his handle Diageo to step down from the chairmanship of United Spirits, an organization he sold to the United Kingdom primary 3 years again. He used to be to get Rs 515 crore or USD 75 million from Diageo as severance bundle.


No foul play in exchange of LOC for Mallya, ‘detain’ order used to be issued by way of mistake: CBI



SBI had in the first week of March 2016 moved the Debt Recovery Tribunal in Bangalore claiming the primary proper on the payment by way of Diageo to Mallya and in search of to impound passport. However, the DRT reserved its order and set the next listening to for March 28, 2016, a good 21 days later.
SBI denies any laxity on its part in dealing with Mallya's case SBI denies any laxity on its part in dealing with Mallya's case Reviewed by kailash soni on September 14, 2018 Rating: 5
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