Banks recovered over Rs 13,000 cr from asset sale of Nirav Modi, Vijay Mallya: FM

Union finance minister Nirmala Sitharaman on Monday said banks have recovered about Rs 13,109 crore from asset sale of defaulters such as diamantaires Nirav Modi and Mehul Choksi, and erstwhile liquor baron Vijay Mallya.

The assets have been seized by the central agency under the Prevention of Money Laundering Act (PMLA).

Sitharaman, who was speaking in the Lok Sabha at the Winter Session, added that banks have also recovered Rs 5.49 lakh crore through resolution of bad loans in the last seven years.

On the cash balance with states, the finance minister informed that states have substantial cash balance, and only two states have negative cash balance.

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A UK court declared Mallya, 65, as bankrupt, paving the way for a consortium of Indian banks led by the State Bank of India to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines.

Mallya, who owes over Rs 9,000 crore to a consortium of banks in principal and interest, remains on bail in the UK.

Modi and Choksi, who are the main accused in the Punjab National Bank (PNB) loan fraud case, have caused losses worth Rs 13,000 crore to the bank.