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Banks allowed to liquidate Mallya’s movable assets to repay debt

PTI Mumbai | Updated on January 01, 2020 Published on January 01, 2020

Vijay Mallya (file photo)   -  Reuters

A special court in Mumbai has permitted a consortium of 15 lenders, led by State Bank of India, to use the movable assets of former liquor baron Vijay Mallya towards repayment of his debts.

The assets, comprising financial securities like shares of the United Breweries Holdings Ltd (UBHL), were attached by the special court under the Prevention of Money Laundering Act (PMLA) in 2016 when it declared Mallya a proclaimed offender.

Under the Criminal Procedure Code, a court can attach a person’s movable assets after he/she has been declared a proclaimed offender.

The consortium of banks earlier filed an application before the special court, seeking release of Mallya’s movable assets to use them for repayment of loans given to him.

Senior counsel Rajeev Patil, appearing for the consortium, said the special court on Tuesday lifted the attachment on the movable assets.

The court has, however, stayed its order till January 18 to enable the parties concerned to approach the Bombay High Court in appeal.

Senior counsel Amit Desai, appearing for Mallya, said the court has ordered lifting of attachment of assets, which are UBHL shares.

“However, we do not know if the court has ordered for the assets to be restored to SBI or the consortium. We are waiting for the order copy for further clarity,” Desai said.

Published on January 01, 2020
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