Vijay Mallya news: SBI consortium sold Vijay Mallya’s share worth Rs 5,825 crore, recovered 70% loss | India Business News
On the earlier occasion, the bank had sold Mallya’s share in (UB) and United Spirits Ltd (USL) worth Rs 1,357 crore. They are in the process to sell Rs 800 crore more shares before June 25. Mallya allegedly owned most of these shares on benami names.
The Wednesday deal was executed in a special arrangement between the Enforcement Directorate (ED who had attached these shares in the money laundering case), SBI led a consortium of the banks and the UB present owner Heineken, to ensure that it should not affect the market price of the company’s shares.
The block deal of share purchase was executed before the opening of the stock exchange, where Heineken had purchased the share. The sold share was 15% of the total share of the company. Earlier the ED has attached these shares in the case, and recently with court permission it transferred it to SBI led consortium recently that entered into a deal with Heineken to encash the shares.
Mallya is in the UK and the government of India trying to extradite him in the case.
The court had declared Mallya as a fugitive economic offender. Under the law, once the court declares an accused fugitive economic offender, the agency can confiscate all his properties—even those not associated with the crime, which will become government property who can auction it to recover the loss.
Mallya allegedly defrauded Rs 900 crore from IDBI Rs 9,990 crore from State Bank of India led a consortium of 17 banks claim. He took bank loans on his personal guarantee, a corporate guarantee of UB Holdings and an inflated brand guarantee of Kingfisher Airlines.
The loan was taken for operating expenses of Kingfisher Airlines but was used for other purposes, including to procure luxury aircraft for Mallya’s personal use and properties.
ED probed two separate money laundering cases against Mallya under the Prevention of Money Laundering Act (PMLA) and filed chargsheet in both cases. During the investigation, the ED attached his properties (including shares) worth Rs 12,500 crore.