Vijay Mallya Fraud Case: Banks recover Rs 1008 crores by deposing of UB shares
New Delhi : In a major setback to Vijay Mallya, the banks have recovered Rs 1008 crores by deposing his 25 lakh UB shares after getting a permission from the PLMA court.
The Enforcement Directorate on Wednesday said a consortium of banks led by the State Bank of India (SBI) recovered ₹1,008 crore by disposing of the United Breweries shares, owing to its proactive action in the money laundering case against fugitive Vijay Mallya.
"Based on the submissions made and proactive steps taken by the ED, and in view of the large outstanding debts of the SBI consortium against Kingfisher Airlines and Vijay Mallya, the Prevention of Money Laundering Act (PLMA) special court allowed the sale of shares on Tuesday. Subsequently, shares were sold by the Recovery Officer today and an amount of ₹1,008 crore has been realised," said the agency.
The ED had earlier said that they have recovered substantial assets in the form of shares belonging to United Breweries Limited were pledged with Yes Bank.
“Thus, these pledged shares were now more or less free from encumbrances and only nominally under the pledge of Yes Bank. Therefore, to secure these shares from alienation by Mr. Mallya and to compel him to return, the ED had requested the court to freeze the shares,” said an official.
Vijay Mallya was announced a proclaimed offender in 2016.