NewDelhi June 3 :A special PMLA court has, in two separate orders passed within the last 10 days, allowed the restoration of properties of fugitive liquor baron Vijay Mallya to a consortium of 17 banks that had provided him loans. The consortium, led by State Bank of India, can now sell off these properties that have a combined value of \u20b95,646.54 crore and recover some of their dues.<\/p>\n
The bank consortium had approached the PMLA (Prevention of Money Laundering Act) court asking for the release of the properties attached by the Enforcement Directorate. The ED raised no objections, but Mallya’s legal team did, and so did the lawyers of other companies that have an interest in these properties.<\/p>\n
Mallya’s lawyers challenged the jurisdiction of the PMLA court. They argued that the liquor baron had only given a personal guarantee while taking the loans and that didn’t connect him to the offence of money laundering.<\/p>\n
But the court rejected the claim and accepted SBI’s plea that it suffered huge losses. ‘It is material to note that the claimants are public sector banks, and these banks are dealing with public money,’ the court said, adding that these PSU banks cannot have any personal or private interest in making the claims against Mallya.<\/p>\n
The court held that the quantifiable loss suffered by the banks was \u20b96,203 crore but the properties in question were insufficient to meet it. So, on May 24, the court ordered the release of properties worth \u20b94,234.84 crore, and on June 1, it released more properties worth \u20b91,411.7 crore.<\/p>\n
Those released so far include properties in UB City, Bengaluru, worth \u20b9712.94 crore; Mallya’s under-construction flats in Kingfisher tower worth \u20b9564.25 crore; several pledged and unpledged shares; and many other properties owned by Mallya through various companies in Bengaluru.<\/p>\n