SBI delists Rs 1,200 crore loan to Vijay Mallya from accounts book
Finance Minister Arun Jaitley says writing off a debt does not mean it is being waived off.
Mumbai: Around Rs 1,200 crore loan given to the now grounded Kingfisher airlines has been written off of the accounts book of country’s largest public sector bank, the State Bank of India.
The bank, however, said removing Mallya’s debt from the books does not mean that it will stop pursuing the case. It has categorised the loan under the non-performig assets category — Advance Under Collection Accounts. Under AUCA, a loan can be written off of the books but the option of pursuing it still remains open.
Finance Minister Arun Jaitley while replying to the oppositions' objections in the Rajya Sabha said that writing off a debt does not mean that it is being waived off.
The largest lender has taken the step after pursuing the matter unsuccessfully with the law enforcement agencies who have still not been able to bring Mallya back from the United Kingdom.
Mallya who was recently declared a ‘proclaimed offender’ by a special Prevention of Money Laundering Act or PMLA Court has so far failed to fulfill several warrants pending against him.
He fled the country in March this year on a diplomatic passport that he held as a member of the Rajya Sabha.