The Debt Recovery Tribunal today advised SBI-led consortium of banks in Vijay Mallya case to make coordinated efforts among themselves to recover around Rs 2000 crore parked in courts in the country and reduce losses to the tune of over Rs 9000 core incurred by the banks.
DRT Presiding Officer Benakanahalli's suggestion came as the consortium of banks and Diageo (Holdings) Netherlands pleaded before the Tribunal to take up their respective interlocutory applications for hearing on a priority basis.
Benakanahalli said banks should sit and sort out the issue.
"I sincerely suggest consortium of banks led by SBI to make a coordinated effort to recover around Rs 2000 crore parked in various courts and reduce the losses to the tune of over Rs 9000 crore incurred by banks," Benakanahalli said.
As the Tribunal began the proceedings, defendants Diageo (Holdings) Netherlands and SBI-led consortium pleaded that their respective interlocutory applications be taken up for hearing on a priority basis.
In response, Benakanahalli said the banks should sit and sort out the issue. The consortium of banks could have earned Rs 200 to Rs 300 crore as interest from the recovered Rs 2,000 crore, he said.
Benakanahalli lamented that the lack of coordination among the banks has resulted in the DRT not getting USD 75 million attached in spite of its March 7 order.
The DRT had in its order barred Mallya from receiving USD 75 Million from Diageo Plc and its subsidiaries as per the sweetheart deal reached between them.
However, USD 40 million of the USD 75 million severance package deal had already been disbursed, following which the bankers' consortium had sought directions from the Tribunal to attach the amount before it.
Following a directive of the Tribunal, Diageo Plc and its two subsidiaries submitted the details of severance package deal, in which the bankers figured out that USD 40 million of the USD 75 million was parked in the account held by Vijay Mallya in New York-based J P Morgan Bank.
On May 17, DRT had directed J P Morgan Bank not to disburse to Mallya USD 40 million and asked it to "attach" (submit) before it statements of accounts held by Mallya in the bank.
Benakanahalli also suggested not to expand the scope of original application by filing too many interlocutory applications, for it would delay the process of justice, while he has to adhere to the Supreme Court deadline of the first week of July.
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