Vijay Mallya property liquidation

What?

A special-purpose court dealing with money laundering offences has allowed banks that lent money to Vijay Mallya to use the embattled liquor baron's seized assets, which could fetch the lenders about Rs 11,000 crore - more than what they had advanced. The Prevention of Money Laundering Act (PMLA) court said that the ruling has been stayed till January 18, until which all parties affected by the order could appeal to the court.offences has allowed banks that lent money to Vijay Mallya to use the embattled liquor baron's seized assets, which could fetch the lenders about Rs 11,000 crore - more than what they had advanced. The Prevention of Money Laundering Act ( PMLA ) court said that the ruling has been stayed till January 18, until which all parties affected by the order could appeal to the court.

When and where?

The ruling came from the Prevention of Money Laundering Act (PMLA) court in Mumbai on Jan 1st.PMLA ) court in Mumbai on Jan 1st .

Why?

The lenders had appealed for the recovery through the seized assets which are in the form of shares.

How?

Shares which are in the form of financial security will be liquidated to help in the recovery to lenders.

Who?

Vijay Vittal Mallya is a fugitive Indian businessman and former Member of Parliament. He is the subject of an extradition effort by the Indian Government to return him from the UK to face charges of financial crimes in India. Mallya is former owner of the Royal Challengers Bangalore cricket team.  A group of 17 Indian banks are trying to collect approximately ₹9,000 crores (US$1.3 billion) in loans which Mallya has allegedly routed to gain 100% or a partial stake in about 40 companies across the world. Several agencies including the Income Tax Department and the Central Bureau of Investigation are investigating Mallya for charges including financial fraud and money laundering, and the Attorney General said that Mallya's assets abroad are "far in excess to loans taken by him".

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In February last year, the Enforcement Directorate (ED) had told the special PMLA court that it had no objection to liquidation of confiscated assets by a consortium of banks, led by the State Bank of India (SBINSE 0.21%).

The lenders are seeking to recover more than Rs 6,200 crore from the fugitive businessman.

However, ED had asked the court to seek a guarantee from the lenders that they would return the money to the court or the ED “in the unlikely event” that the accused wins the criminal trial.