Banks to sell Mallya-owned shares in United Breweries valued at Rs 5,500 crore

Banks to sell Vijay Mallya's United Breweries shares worth Rs 5,500 croreBanks to sell Vijay Mallya's United Breweries shares worth Rs 5,500 crore.

Indian lenders, led by the State Bank of India, have initiated talks with SBI Caps to sell Mallya-owned shares in United Breweries (UBL). Mallya's 16.15 per cent stake in the UB group is valued at Rs 5,500 crore and will be sold via block deals.

ED had earlier attached properties in the case and a consortium of banks had been claiming the same for debt recovery. Banks had filed for recovery in DRT (Debt Recovery Tribunal), Bangalore for which an order was issued in favour of the banks, but the ED had initially opposed the order. However, the financial probe agency later said it had no objection, following which the PMLA court issued an order on May 24.

For the uninitiated, Mallya has been facing the ED probe after Kingfisher Airlines defaulted on bank loans. While the ED and the CBI were investigating the matter, Mallya fled the country and went to London. The financial daily report cited a source saying that banks would be able to sell shares to recover their dues in the ongoing quarter.

The PMLA court said in case Mallya was found non-guilty later, the banks would have to restore the properties back to Mallya after recovering their dues. A senior public sector bank executive told the publication that the recent London court verdict would also help in recoveries. Although provisions against exposure have been made in line with regulatory norms in the past, the public money is at stake.