The Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) started the process of seizing the assets of Vijay Mallya, chairman of the non-operational Kingfisher Airlines Ltd
The Enforcement Directorate (ED), under the Prevention of Money Laundering Act (PMLA), has started the process of seizing the assets of Vijay Mallya, Chairman of the non-operational Kingfisher Airlines Ltd, reports The Indian Express.
Shares, worth Rs 100 crore, held directly or indirectly by Mallya in United Breweries Ltd (UBL) were transferred by Stock Holding Corporation of India Ltd (SHCIL) to the central government.
ED wrote to SHCIL two months ago to transfer the title and rights of unpledged shares of UBL, United Spirits Ltd (USL) and McDowell Holdings Ltd valued at Rs 4,000 crore held by Mallya and his associate firms, under section 9 of the PMLA.
Vijay Mallya was removed as a director from United Breweries in August after SEBI has barred him from holding any managerial or director position of a listed company.
The special court can pass an order for confiscation of the property attached by ED under the PMLA, in cases where an accused had died or the accused has been declared proclaimed offender. After the court passed the order of confiscation, all the rights and title in such property ‘will vest with the Central Government free from all encumbrances’.The defunct airline owes more than Rs 9,000 crore to 17 lenders which includes Axis Bank, IDBI Bank, SBI, Punjab National Bank, Bank of India, Bank of Baroda, United Bank of India, Central Bank, UCO Bank, Corporation Bank, Indian Overseas Bank, Federal Bank, Punjab and Sind Bank and others.