Mallya assets: Rs 100-crore shares transferred to Centre
India's ace anti-money laundering agency Enforcement Directorate has began the method of confiscating the property of Vijay Mallya, chairman of the now-defunct Kingfisher Airlines Ltd, which had been connected by the company beneath the Prevention of Money Laundering Act (PMLA).
Sources mentioned that the Stock Holding Corporation of India Ltd (SHCIL) has transferred the title and rights of shares price Rs 100 crore of United Breweries Ltd (UBL), held straight and not directly by Mallya, to the central authorities.
Earlier, the ED had written to SHCIL asking it to transfer the title and rights of un-pledged shares of UBL, United Spirits Ltd (USL) and McDowell Holdings Ltd worth close to Rs 4,000 crore, held by Mallya and his associate firms, under section 9 of the PMLA.
In September, 2016, the ED had provisionally attached these shares in connection with the loan default of over Rs 6,000 crore by Kingfisher Airlines. Subsequently, the provisional attachment was confirmed by the adjudicating authority of the agency.
The agency has attached 4 crore unpledged shares of UBL, 25.14 lakh shares of USL and 22 lakh shares of McDowell Holdings of Mallya, and some private companies allegedly linked to him. These firms include Devi Investment Pvt Ltd, Kingfisher Finvest India Ltd, Mallya Private Ltd, Pharma Trading Company, Vittal Investment Pvt Ltd, United Breweries Holdings Ltd, Kamsco Industries and The Gem Investment and Trading, said sources.
In February, a special court had confirmed the ED order to attach Rs 4,200-crore assets of Mallya and others, paving the way for their confiscation by the agency.
On June 14, the ED submitting a 5,000-page prosecution complaint in a Mumbai court on an alleged loan default of Rs 900 crore by Kingfisher. The complaint accused the airline and Mallya of having allegedly routed overseas over Rs 417 crore of the Rs 900 crore it secured as loan from IDBI Bank for aircraft rental leasing and operational expenses.
The judge has set December 4 as the start date for a final hearing in the extradition case. If the Chief Magistrate rules in the government's favour, the British Home Secretary will have to order Mallya's extradition within two months since the day of the judgment.
Mallya is now facing an extradition to India trial in the United Kingdom where he has been living in a self-imposed exile since he left India on March 2 last year on a diplomatic passport he had held as Rajya Sabha member.
At present, two top most investigating agencies in country ED and the Central Bureau of Investigation are pursuing Mallya's case with the UK authorities by taking several delegates to their government.