[ By Bobby Anthony ]A special Prevention of Money Laundering Act (PMLA) court in Mumbai has given its green signal to a lenders’ consortium of 15 banks to sell off absconding liquor baron Vijay Mallya’s economic assets to recover their dues, exactly a year after he was declared as India’s first fugitive economic offender.However, the PMLA Special Court has stayed its order till January...
A special Prevention of Money Laundering Act (PMLA) court in Mumbai has given its green signal to a lenders’ consortium of 15 banks to sell off absconding liquor baron Vijay Mallya’s economic assets to recover their dues, exactly a year after he was declared as India’s first fugitive economic offender.
However, the PMLA Special Court has stayed its order till January 18 to enable all parties concerned to file their appeals before the Bombay High Court.
The court has directed the consortium of 15 banks led by the State Bank of India (SBI) to sell off Mallya's economic assets like financial securities and shares in Mallya’s companies, which have been under attachment since 2016.
The lenders’ consortium has to recover over Rs 6,000 crore, along with interest from Mallya who is currently in the United Kingdom, after the Enforcement Directorate (ED) informed the special court last year that it had no objections to the same.
Among the assets are Mallya's shares in the United Breweries Holdings Ltd, the value of which is not clear, but which were attached after he was declared a proclaimed offender.
Later in January 2019, Mallya earned the dubious distinction of being declared the country's first "fugitive economic offender" under the Fugitive Economic Offenders Act, 2018.
Earlier, the consortium of 15 banks earlier filed an application before the special court, seeking release of Mallya's movable assets which could be sold off to utilize them for repayment of loans extended to him. The lenders in their application said they want to liquidate assets to claim over Rs 6,000 crore.
Under provisions of the Criminal Procedure Code, a court orders attachment of a person's movable assets after he or she has been declared a proclaimed offender.
A person against whom a warrant has been issued can be declared a proclaimed offender if the court believes that he or she has absconded or is evading execution of warrant.
Senior counsel Rajeev Patil, who appeared for the lenders’ consortium, said that the special court lifted the attachment on Mallya’s movable assets.
Senior counsel Amit Desai, who appeared for Mallya, stated that the court has ordered lifting of attachment of assets, which are United Breweries Holdings Ltd shares.
Mallya, 65, who is accused of money laundering by the Enforcement Directorate (ED), fled India in March 2016 and is now based in London. He faces cases of money laundering filed by the ED, which has already attached his movable and fixed assets worth around Rs 10,000 crore so far. While some of his fixed assets have been sold, others are pending disposal.
The UK police once arrested Mallya in April 2017, and in December 2018, a UK court ordered his extradition to India which he has contested. The matter is pending.