Thursday, January 02, 2020

PMLA court orders liquidation of Vijay Mallya’s Rs 11,000-cr assets to clear debt

New Delhi: A special Prevention of Money Laundering Act (PMLA) court in Mumbai Wednesday allowed a State Bank of India-led consortium to utilise liquor baron Vijay Mallya’s assets worth approximately Rs 11,000 crore.

SBI, leader of the 17-bank consortium that gave over Rs 9,000 crore to Mallya as loan, will now have charge of the said properties, which it can choose to auction and recover the dues.
The consortium is trying to recover Rs 6,205 crore from Mallya along with compoundable interest since 2013.

The PMLA court, however, allowed both parties to approach the Bombay High Court by 18 January before the order comes into effect.

“The restitution of these assets with SBI will now allow the bank to recover their loan by liquidation and auctioning,” explained an Enforcement Directorate (ED) official, who did not wish to be named.

ED had attached Mallya’s properties during its investigation. Last year, Mallya had posted on microblogging site Twitter that ED and other agencies have attached assets worth Rs 13,000 crore whereas he owes just over Rs 9,000 crore, including interest.

“Till now, the assets were with ED. Now, the bank can choose to auction or sell these assets to recover their money,” added the ED official.
01/01/20 Ananya Bhardwaj/Print
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