Indian banks have collected about Rs.13,109 crore from asset sales by defaulters such as Nirav Modi and Vijaya Mallya,  Finance Minister Nirmala Sitharaman said. The assets were seized by the central agency in accordance with the prevention of-Money Laundering Act (PMLA).

Vijay Mallya has been declared bankrupt by a British court, paving the way for a consortium of Indian banks led by the State Bank of India (SBI) to seek repayment of debt owed by the now-defunct Kingfisher Airlines through a worldwide freezing order.

Meanwhile, the 65-year-old businessman remains in the UK on bail pending the resolution of a "secret" court matter, believed to be related to an asylum application, in connection with unrelated extradition proceedings. While Mallya owes a consortium of banks over Rs.9,000 crore in principal and interest, diamantaires Nirav Modi and Choksi, the key suspects in the Punjab National Bank (PNB) loan fraud case, have caused the bank losses of Rs.13,000 crores.

In addition, Sitharaman stated that in the last seven years, Rs.5.49 lakh crore has been recovered through the resolution of bad loans. She stated that while most states have a healthy cash balance, only two have a negative cash balance.

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