DRT sells Vijay Mallya-owned UBL shares for Rs 5,824.50 crore in bank loan fraud case
Vijay MallyaFile photo

DRT sells Vijay Mallya-owned UBL shares for Rs 5,824.50 crore in bank loan fraud case

Mumbai, June 23, 2021

The Debt Recovery Tribunal (DRT) today, on behalf of the State Bank of India (SBI)-led consortium, sold shares of United Breweries Limited (UBL), owned by businessman Vijay Mallya and attached by the Enforcement Directorate (ED), for Rs 5,824.50 crore.

The ED had recently transferred the shares, estimated by it to be worth about Rs 6,600 crore, to the SBI-led consortium as per the order of the PMLA Special Court in Mumbai.

"Further realisation of Rs 800 crore by sale of shares is expected by 25th of June," a press release from the ED said.

"It is pertinent to mention here that due to the cooperation and help extended by ED, public sector banks have already recovered Rs 1357 crore by selling the shares earlier. Thus, the banks shall be realising total amount of Rs 9041.5 crore through sale of a part of assets attached/seized by ED under the provisions of PMLA," it said.

The ED said that, as on date, out of the total attached and seized assets of Rs. 18,170.02 crore under provisions of PMLA in the cases against Mallya as well as diamantaires Nirav Modi and Mehul Choksi, it had transferred a total of assets worth Rs 9,371.17 crore to the public sector banks that had suffered a loss of Rs 22,585.83 crore in the alleged bank loan fraud cases involving the three businessmen.

The Rs 9371.17 crore handed over to the banks includes confiscated assets worth Rs 329.67 crore, the release said, and represent 40% of the total losses suffered by the banks.

According to the release, Mallya, Modi and Choksi had defrauded the banks by siphoning off funds through their companies, resulting in a total loss of Rs 22,585.83 crore to the banks.

The ED said that, as a sequel to the FIR filed by the Central Bureau of Investigation (CBI), it had taken swift action by "unearthing myriad web of domestic and international transactions and stashing of assets abroad."

"Investigation has also irrevocably proved that these three accused persons used dummy entities controlled by them for rotation and siphoning off the funds provided by the banks.

"The ED has also taken immediate steps to attach/seize assets worth Rs. 18,170.02 crore which included assets worth of Rs. 969 crore located in foreign countries. The quantum of the attached and seized assets represents 80.45% of total bank loss of Rs. 22,585.83 crore.

"The investigation by the ED has proved that substantial part of these assets were held in the names of dummy entities/ trusts/ third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets.

"Prosecution Complaints have been filed against all the three accused after completion of PMLA investigation. Extradition requests have been sent for these persons to the UK and Antigua and Barbuda.

"The extradition of Vijay Mallya has been ordered by the Westminster Magistrate's Court and confirmed by the UK High Court. Since, Vijay Mallya has been denied permission to file appeal in the UK Supreme Court, his extradition to India has become final.

"The Westminster Magistrates Court has ordered extradition of Nirav Modi to India. It is pertinent to mention here that Nirav Modi has been in London Jail for last two years and three months on the basis of extradition request by India. Nirav Modi and Vijay Mallya have also been declared Fugitive Economic Offenders by PMLA Court in Mumbai," the release added.

NNN

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