The Debt Recovery Tribunal (DRT) on Wednesday, June 23, sold shares of liquor maker United Breweries Ltd (UBL), held by businessman Vijay Mallya, for ₹5,824.5 crore. The DRT sold the shares, which had been attached by the Enforcement Directorate (ED), on behalf of State Bank of India (SBI), which leads the consortium of lenders to Mallya.
The ED expects a second round of sale of shares of Mallya worth ₹800 crore on Friday, June 25.
PMLA special court ruling
The ED said in a statement that the share sale was carried out after a special PMLA (Prevention of Money Laundering Act, 2002) court in Mumbai, earlier this month, allowed the restoration of Mallya’s properties and companies linked to him to the SBI-led consortium. Following this, the ED transferred shares worth ₹6,600 crore to the lenders.
The ED said: “Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded public sector banks (PSBs) by siphoning off funds through their companies which resulted in total loss of ₹22,585.83 crore to the banks. As a sequel to an FIR by the CBI (Central Bureau of Investigation), the ED has taken swift action by unearthing myriad web of domestic and international transactions and stashing of assets abroad. Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks.
ED not only attached/ seized assets worth of Rs. 18,170.02 crore (80.45% of total loss to banks) in case of Vijay Mallya, Nirav Modi and Mehul Choksi under the PMLA but also transferred a part of attached/ seized assets of Rs. 9371.17 Crore to the PSBs and
— ED (@dir_ed) June 23, 2021
“The ED has also taken immediate steps to attach/seize assets worth ₹18,170.02 crore, which included assets worth of ₹969 crore located in foreign countries. The quantum of the attached and seized assets represents 80.45% of total bank loss of ₹22,585.83 crore. The investigation by the ED has proved that a substantial part of these assets was held in the names of dummy entities/ trusts/ third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets.”
PSBs recover money
“It is pertinent to mention here that due to the cooperation and help extended by ED, PSBs have already recovered ₹1,357 crore by selling the shares earlier. As on date, out of total attached/seized assets of ₹18,170.02 crore under provisions of PMLA, assets worth ₹329.67 crore has been confiscated and assets worth ₹9,041.5 crore, representing 40% of total loss to the banks, have been handed over to the PSBs,” said the statement.
Mallya is facing extradition proceedings in the UK and was declared a fugitive economic offender in India in 2019. “The extradition of Vijay Mallya has been ordered by the Westminster Magistrates Court and confirmed by the UK High Court. Since Vijay Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final,” said the ED.