IDBI loan case: ED to attach Mallya’s assets worth Rs 9,000 crore
The ED is mulling attaching domestic assets and shares worth around Rs 9,000 crore owned by former liquor baron Vijay Mallya in connection with its money laundering probe in the IDBI bank loan fraud case.india Updated: May 11, 2016 21:27 IST
The ED is mulling attaching domestic assets and shares worth around Rs 9,000 crore owned by former liquor baron Vijay Mallya in connection with its money laundering probe in the IDBI bank loan fraud case.
Officials said on Wednesday that the agency has already begun the exercise of identifying and valuing country-wide immovable assets of the beleaguered businessman in order to place them under attachment under the criminal provisions of the Prevention of Money Laundering Act (PMLA).
They said the agency will inform market regulator, Securities and Exchange Board of India (SEBI), about its move to similarly attach his shares in various Indian companies so that no third party rights are created.
Enforcement Directorate(ED) officials said that as per preliminary assessment, value of the assets that would be provisionally attached will be around Rs 9,000 crore that is equal to the total default of bank loans he is accused of.
They said Mallya’s assets in the form of bungalows, vehicles, bank balances and others have already been assessed by agency sleuths probing the case.
Banks will also be taken on-board before attaching these assets under PMLA laws, they said, adding that the agency does not want to “jeopardise” their interests over these assets through which they are planning to get back their loans.
The Enforcement Directorate (ED) has been trying to get Mallya to join investigation “in person” in the over 900 crore IDBI loan fraud case.
It has exhausted all legal options to make Mallya join the probe, including issuance of a non-bailable warrant against him from a Mumbai court based on which it made the requests for the revocation of his passport and subsequent deportation bid to bring back the beleaguered businessman from the UK.
However, in a setback to India’s efforts to expeditiously get Mallya back, UK has made it clear that he cannot be deported and asked India to seek extradition instead.
The British government has said that it acknowledges “the seriousness of allegations” against Mallya and was “keen to assist” the Indian government in this case.