Banks serve Kingfisher Airlines with loan recall notice

KFA, the airline promoted by Vijay Mallya, owes about Rs 7,000 crore to lenders

Travel News
Travel News

State Bank of India on Wednesday said that a loan recall notice has been served on the defunct Kingfisher Airlines (KFA) on behalf of the consortium of 17 lenders.

“We have served the loan recall notice. The notices under the Sarfaesi Act, DRT and other processes will follow.

“Also, the recall notice was served just yesterday, so it will be very difficult to estimate the time that the recovery process will take,” Shyamal Acharya, Deputy Managing Director, Mid-Corporate group, State Bank of India, told newspersons on the sidelines of an event hosted by Gems and Jewellery Export Promotion Council.

Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act and DRT (Debt Recovery Tribunal) are two routes that lenders can resort to for recovering bad loans.

 

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