Banks recovered less than 2% of Mallya's outstanding loans

Vijay Mallya at an interview with FT

Public sector banks have been able to recover only a fraction of the more than Rs 8,000 crore loan outstanding against embattled businessman Vijay Mallya, Parliament was informed today.

Banks had reported Rs 8,191 crore as loan outstanding against Mallya as on December 31, 2016, Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Rajya Sabha.

"As reported by PSBs, amount of Rs 155 crore has been recovered by conducting online mega auction by selling from seized properties from defaulting loan borrower Vijay Mallya," Gangwar said.

He was responding to a question about outstanding loan dues against Mallya and recovery actions being taken.

Banks take all efforts including sale of assets to recover their dues, the minister said.

The loan resolution and recovery is guided by RBI and banks' board approved policy, Gangwar added.

Mallya is currently living in the UK, evading arrest in cases related to loan defaults in India. Various agencies have issued summons to him.

Following requests from the Finance Ministry, the Ministry of External Affairs has also revoked his passport.