ED takes possession of Rs 100 crore Mandwa farm controlled by Vijay Mallya

The ED had sent a notice to Mandwa Farms under section 8 (4) of the PML Act directing it to immediately vacate and handover possession of the property.

The Enforcement Directorate has taken over possession of the Mandwa Farms worth Rs 100 crore controlled by liquor baron, Vijay Mallya. The farm is 17 acres. The action comes a day after the appellate tribunal New Delhi under the Prevention of Money Laundering Act had dismissed an appeal filed by Mandwa Farms Pvt Ltd against allowing Enforcement Directorate to take possession of its property controlled by Vijay Mallya.

The ED had sent a notice to Mandwa Farms under section 8 (4) of the PML Act directing it to immediately vacate and handover possession of the property which is a land parcel with an in-built house in Alibag.

The ED submitted that the attached property is controlled by Mallya who is required to pay an amount of approximately Rs 9,000 crore to various financial institutions and has been declared as an absconder. The advocates for Mandwa Farms seeking interim relief submitted that it was a distinct legal entity from that of Mallya.

The tribunal held, "prima facie, we are inclined to agree with the respondent that the appellant company was controlled by Dr Vijay Mallya. Admittedly, Dr. Vijay Mallya and his group companies owe amount in excess of several thousand crores of rupees to different bank/financial institutions against loans which have not been repaid in time, diverted for use other than that for which loan was sanctioned and so on. He is enjoying the leave outside of India and has been declared an absconder."

OneIndia News