The latest development on the Vijay Mallya money laundering case is that the State Bank of India has written off Rs 1,201 crore he owed to the bank and moved it to the Advance Under Collection Account (AUCA) to clear its balance sheet. Mallya, who has been declared by ED as a proclaimed offender, owed a total of Rs 6,963 to 17 banks. Mallya isn’t the only one, SBI has written off Rs 7,016 crore of its books by forgoing loans 63 defaulters owed to it including KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore).
The news hasn’t gone down well with many on Twitter, especially after PM Narendra Modi’s demonetisation, with people struggling to withdraw their own money from banks. “EXPLOSIVE! While we queue up for 2000 rupees, SBI has written off 48000cr bad loans including 1201cr of Vijay Mallya!” wrote a user. “33 people have died & millions suffer in long lines as Vijay Mallya gets a 1200 cr SBI loan write-off from Modiji!” wrote another.
But in case you don’t know, the loan has been written-off and not waived-off, which does not mean that the Mallya’s Kingfisher Airlines and other 62 companies have gotten away with the money. Moving the loan to AUCA is a Reserve Bank of India-approved technique to improve the non-performing assets ratio and clean the bank’s balance sheet. Reportedly, the recovery will continue.
However, here’s what Twitterati’s saying.
EXPLOSIVE! While we queue up for 2000 rupees, SBI has written off 48000cr bad loans including 1201cr of Vijay Mallya! http://t.co/TSMXHJqYBt
— Preeti Sharma Menon (@PreetiSMenon) November 16, 2016
33 people have died & millions suffer in long lines as Vijay Mallya gets a 1200 cr SBI loan write-off from Modiji! http://t.co/xWJdFOikCV
— Randeep S Surjewala (@rssurjewala) November 16, 2016
SBI writes off loans of 63 wilful defaulters.
A job well done in favour of soldiers guarding Indian borders 24/7!
Was it possible RR at RBI?
— Arun Shourie fαи (@FeignShourie) November 16, 2016
While you and me prove our patriotism by standing in queues,SBI writes off loan of wilful defaulters,Vijay Malya’s 1201 cr loan waived off! http://t.co/qGBLrATqtQ
— vijaita singh (@vijaita) November 16, 2016
However, there were some who probably understood what exactly happened.
Latest rumour: SBI has waived off Mallya’s & other defaulters’ loans
Write off isn’t waive off! http://t.co/Msk3csk6C6
— Amrita Bhinder (@amritabhinder) November 16, 2016
— Exploring Life (@ViewsSpade) November 16, 2016
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