Court orders seizure of Mallya’s assets worth Rs 1,620 crore
In a fresh round of trouble for controversial liquor baron Vijay Mallya, a court in Mumbai has ordered seizure of assets worth Rs 1,620 crore that he held in the form of shares of various companies.india Updated: Nov 12, 2016 00:27 IST
In a fresh round of trouble for controversial liquor baron Vijay Mallya, a court in Mumbai has ordered seizure of assets worth Rs 1,620 crore that he held in the form of shares of various companies.
The court order came following an application by the Enforcement Directorate (ED), which is probing money laundering charges against Mallya. The court also declared him a proclaimed offender.
The ED, in a statement, said Mallya held the shares in his group companies such as United Breweries (Holdings) Limited, United Breweries Limited and United Spirits Limited.
Earlier, the ED attached his properties worth `8,041 crore (market value) under the Prevention of Money Laundering Act (PMLA).
Following an attachment under the PMLA, the agency can take possession of properties only when a higher adjudicating authority confirms the order issued by an agency official. The process takes nearly six months.
However, the present round of seizure came under the criminal procedure code, wherein assets can be seized immediately. The officer added that the ED has now attached all known properties of Mallya.
“Rest of them were taken over by banks when he defaulted on loans,” said the official.
Mallya is facing charges of bank loan default worth Rs 9,000 crore.
The CBI and ED are simultaneously probing the cases of corruption and money laundering against him. Ever since the multi-agency probe was launched against the liquor baron, he went to the UK and has refused to return.
The ED wanted to attach Mallya’s overseas assets as well, but the court declined to pass the order as of now, saying the agency doesn’t have jurisdiction abroad.
First Published: Nov 12, 2016 00:26 IST