Default of loan repayment by vijay mallya led companies

[Bijay Shrestha]

Dear friends,

As we all know that Liquor Baron Vijay Mallya led Companies defualted in repayment of ₹ 9000 Crore to various banks. Now those banks are trying hard to get him arrested and recover their dues either by selling his properties and others.

Now my doubt is If the Company has defaulted in repayments, then shareholders liability cannot exceed the amount attributable to them from the Company i.e. limited liability. How can the Banks recover from his personal assets ?

Also what is the legal provisions behind this and behind his arrest ?

Please suggest.

P.S. It is only for knowledge purpose.

AI Summary

Banks Can Target Personal Assets for Debt Recovery Under SARFAESI Act Due to Personal Guarantees in Loan Defaults A discussion on a forum raised questions about the legal implications of loan defaults by companies led by a prominent liquor baron, resulting in a 9000 crore debt to banks. The inquiry focused on how banks could recover debts from personal assets despite the concept of limited liability for shareholders. A response highlighted the use of the SARFAESI Act, allowing banks to seize and sell assets for recovery. Further clarification suggested that personal guarantees provided by the individual in question might permit banks to target personal assets for debt recovery. The discussion was for informational purposes.