Bank consortium, ED meet to recover money from Mallya

xOfficials said the meeting was arranged by the Finance Ministry at the ED’s behest so that the two sides can discuss the alleged loan default by Mallya and his companies and also chart the way forward.

The two sides are understood to have shared notes and details of the probe that they have undertaken till now in the case, which is also being heard by the Supreme Court.

The ED is probing Mallya and KFA under anti-money-laundering laws in connection with a Rs 900-crore loan default of IDBI bank. IDBI and 16 other banks have formed a consortium led by the State Bank of India (SBI) to pursue these cases against Mallya and his companies.

The agency, which wants Mallya to join the probe in this case “in person”, is also mulling preparations to attach his foreign and domestic assets under PMLA. It has virtually exhausted all legal options to make Mallya join the probe, including issuance of a non-bailable warrant against him by a Mumbai court based on which it made the requests for revocation of his passport and subsequent deportation bid to bring back the beleaguered businessman from the UK.