ED attaches Mallya’s assets worth Rs 1,411 cr
nation Updated: Jun 12, 2016 05:55 IST
MUMBAI: The Enforcement Directorate (ED) attached moveable and immovable properties worth Rs 1,411 crore of businessman Vijay Mallya and United Breweries (Holding) Limited under the Prevention of Money Laundering Act (PMLA) on Saturday.
The provisional attachment includes bank balance of Rs 34 crore, one flat each in Bengaluru and Mumbai, an industrial plot in Chennai, coffee plantations in Coorg and property in UB CITY and Kingfisher Tower areas of Bengaluru.
A tweet from ED’s official handle read: “ED has attached properties worth Rs 1,411 crore of Market Value of Vijay Mallya and UB (Holding) Ltd under PMLA (Prevention of Money Laundering Act) in Kingfisher Airlines’ IDBI Bank case.”
The probe agency said investigations show the accused was disposing of properties to ensure “further proceedings under PMLA may be frustrated”. Therefore, properties equivalent to Rs 807 crore — the unpaid loan amount out of Rs 864 crore extended to Kingfisher Airlines against collateral security of Kingfisher brand, corporate guarantee of UBHL and personal guarantee of Mallya despite weak financials — which has present market value of Rs 1,411 crore was provisionally attached.
The accused can appeal against this action before the adjudicating authority of PMLA within 180 days. Sources in the ED said neither Mallya nor his legal team have communicated with them as yet.
Mallya, whose defunct airlines owes more than Rs 9,000 crore to various banks, left India on March 2.
The agency had registered a money laundering case against him and others based on an FIR registered last year by the CBI.
Meanwhile, the special PMLA court on Friday reserved an order on ED’s plea seeking to declare Mallya a proclaimed offender.
Sources said last week the agency had moved the application against Mallya. The order is likely to be passed on June 13.
A person can be termed a proclaimed offender in a criminal case if the court has reason to believe the accused has absconded or is so concealing himself that a warrant cannot be executed against him.