Banks have recovered more than Rs 13,000 cr from the sale of the assets of Nirav Modi, Vijay Mallya: FM

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The assets were seized by the central agency under the Prevention of Money Laundering Act.

Vijay Mallya owes more than Rs 9,000 crore to a consortium of banks in principal and interest.

Union Finance Minister Nirmala Sitharaman said on Monday that banks had recovered around Rs 13,109 crore from the sale of assets from defaulters such as diamond dealers Nirav Modi and Mehul Choksi, and former baron of alcohol Vijay Mallya.

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

Sitharaman, who was speaking at Lok Sabha during the winter session, added that the banks have also recovered 5.49 lakh crore in rupees from bad debt resolution over the past seven years.

Regarding the cash balance with the states, the Minister of Finance informed that the states have a significant cash balance and only two states have a negative cash balance.

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A UK court has declared Mallya, 65, bankrupt, paving the way for a consortium of Indian banks led by the State Bank of India to seek a global freeze order to seek repayment of debt owed by defunct Kingfisher Airlines .

Mallya, who owes more than 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 defendants in the Punjab National Bank (PNB) loan fraud case, caused losses worth Rs 13,000 crore to the bank.

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