ED attaches R6,630-cr assets of Vijay Mallya
Seizes farmhouse, apartments and FDs in laundering case
The Enforcement Directorate( ED) on its second attachment order for assets worth R6,630 crore against beleaguered businessman Vijay Mallya, seizing his farmhouse, flats and fixed deposits in connection with its moneylaundering case against him and his associates.
The agency had recently expanded the probe in this regard as it took over investigation into the alleged loan default of R6,027 crore taken from a consortium of nationalised banks led by SBI, in which a fresh case was also filed by the Central Bureau of Investigation (CBI) last month. The latest action is in the aftermath of the newc ase.
The total attachment made by the agency in this case has now shot up to R8,041 crore. It had attached assets worth R1,411 crore a few months ago.
The provisional attachment order, issued under the provisions of the Prevention of Money Laundering Act, said it has ordered the seizing of a farmhouse in Alibaugh worth R25 crore, multiple flats in Kingfisher Tower in Ben-galuruworth R565 crore, fixed deposits of Mallya with a private bank to the tune of R10 crore and shares of USL,United Breweries and Mcdowell Holding, jointly held by the liquor baron and UBHL and his controlled entities, worth R3,635 crore.
“The total attachment under today’s order is worth R4,234.84 crore but the present market value of these properties and assets is R6,630 crore approximately,” the agency’s order said. It alleged these assetswerethe“proceedsgenerated out of criminal activity” of the alleged default of bank loans as it claimed Mallya “criminally conspired” with Kingfisher Airlines and United Breweries Holdings to obtainfundsthroughtheconsortium of banks and out of this total amount, the principal fund of R4,930.34 crore “still remains unpaid”.
“In addition, huge number of shares were also being held in the name of various other group companies controlled directly or indirectly by Mallya.Hence,itappearedthat even though sufficient funds were available with the promoters of KFA — Mallya and UBHL—theyhadnointention to make payment towards the loans from the consortium of banks,” the ED said in the order, accessed by PTI.