Court allows banks to sell Vijay Mallya’s UBHL shares
However, after Mallya’s lawyers sought a stay on the order’s execution on the grounds that they need time to approach the Bombay high court (HC), the PMLA court stayed the execution till January 18.Updated: Jan 02, 2020 03:26 IST
A special court designated under the Prevention of Money Laundering Act (PMLA) on Wednesday granted a consortium of banks led by State Bank of India (SBI) the rights of United Breweries Holdings Ltd (UBHL), owned by fugitive economic offender (FEO) Vijay Mallya. This means the bank can sell off UBHL’s shares and recover their dues.
However, after Mallya’s lawyers sought a stay on the order’s execution on the grounds that they need time to approach the Bombay high court (HC), the PMLA court stayed the execution till January 18. In the meantime, Mallya is likely to challenge the order before the HC.
Mallya and others, including top officials of IDBI Bank, are accused under PMLA in a ₹9,000-crore money-laundering fraud.
After Mallya was declared FEO on the Enforcement Directorate’s (ED) plea, his and his family members’ properties were attached by the latter. The SBI-led consortium of banks had then approached the special PMLA court, seeking the rights of Mallya’s properties and shares, approximately worth ₹6,203 crore. However, the PMLA court on Wednesday gave the banks the right of only UBHL shares, and not Mallya’s entire property. The special court is yet to begin hearing on confiscation of properties that prosecution agencies have listed as that of Mallya’s.