ED may reject Vijay Mallya’s offer of sale of equity: Sources

The Enforcement Directorate (ED) is not inclined to sell movable or immovable properties of Vijay Mallya, and may reject the embattled tycoon’s offer of sale of equity in its reply at the next hearing in a case in Karnataka High Court.

Sources have told Moneycontrol that ED’s reluctance to accept Mallya’s offer for sale of equity stems from volatility inherent in the instrument’s nature, and subsequent issues that could arise from a sale.

Mallya recently said that he had made an “unconditional offer” for a “comprehensive settlement” of about Rs 13,900 crore before the Karnataka High Court.

He added that he had requested the court to form a committee for to sell equity assets under judicial supervision, and deposit the money in an escrow account if needed.

But a source in the Enforcement Directorate said that the agency is not a valuation expert to judge the actual of value of shares that have been offered. “Share prices could rise tomorrow after we have sold. Who will then take responsibility?” the source, close to the agency, said, adding that the ED would take a final call only if the court issues an order of confiscation.

Another source told Moneycontrol that the current value of shares offered by Vijay Mallya are only worth Rs 6,000 crore, as against a total claim of Rs 15,000 crore that the liquor baron owes to various lenders.

The next hearing in the Karnataka High Court is on October 1.

In a separate case in the PMLA court, Mallya has already complained that the ED is resisting his efforts to settle claims of banks via sale of properties and shares.

The PMLA court will hear the case next on September 28 where Mallya has been labelled as a “fugitive economic offender” under a newly-instituted law.