Special Court Allows Banks To Seize Vijay Mallya’s Movable Assets To Recover Debt

Published : 3 Jan 2020 5:21 AM GMT
Special Court Allows Banks To Seize Vijay Mallya’s Movable Assets To Recover DebtImage Credits: The Indian Express

The new year did not start on a good note for liquor baron – Vijay Mallya as a special court in Mumbai has allowed a consortium of 15 banks led by the State Bank of India (SBI) to use the movable assets of beleaguered businessmen to recover the money he owes them. The assets, comprising financial securities like shares of the United Breweries Holdings Ltd (UBHL), were attached by special Prevention of Money Laundering Act (PMLA) court in 2016 when it declared Mallya a proclaimed offender, reported NDTV.

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.

The court, however, has stayed the order till January 18 and gave time for the parties concerned to file an appeal in the Bombay High Court.

Currently, Mallya owes somewhere around Rs 9,000 crore to the banks. However, it is expected that seizing his assets will help the concerned banks to get Rs 6,000 crores.

The consortium of banks have earlier appealed to the special court asking the release of Vijay Mallya’s movable assets to utilise them.

Senior counsel Rajeev Patil, appearing for the consortium, said the special court on Tuesday lifted the attachment on the movable assets.

Mallya had left the country in March 2016 and is currently residing in London and facing extradition. Mallya is out on bail.

The former CEO of Kingfisher airlines – low-cost airlines claims that the cases against him are ‘politically motivated’ and said that the loan taken from the bank was to keep his airlines afloat.

“I did not borrow a single rupee. The borrower was Kingfisher Airlines. Money was lost due to genuine and sad business failure. Being held as a guarantor is not fraud,” Mallya had written on Twitter. He has also said that he is ready to pay the money.

Also Read: UK High Court Allows Vijay Mallya To Appeal Against His Extradition

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