ED at­taches R6,630-cr as­sets of Vi­jay Mallya

Seizes farm­house, apart­ments and FDs in laun­der­ing case

The Financial Express - - FRONT PAGE - Press Trust of In­dia

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.

Vi­jay Mallya

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