A special court designated under the Prevention of Money Laundring Act (PMLA) on Wednesday granted consortium of banks led by State Bank of India (SBI) the rights of United Brewries Holdings ltd owned by the fugitive economic offender (FEO) Vijay Mallaya. This means the bank can sell of UBHL's shares and recover their dues.
However, after Mallaya's lawyers sought a stay on the order's execution on the grounds that they need time to approach the Bombay High Court, the PMLA court stayed the execution till January 18. In the meantime Mallaya is likely to challenge the order before HC. Mallaya and others, including top officials of IDBI Bank, are accused under PMLA in a rupees 9000 crore money- laundring fraud.
After Mallaya was declared FEO on the Enforcement Directorate's (ED) plea, his and his family member's properties were attached by the latter. The SBI-led consortium of banks had then approached the special PMLA court, seeking the rights of Mallaya'a properties and shares, approximately worth rupees 6,203 crore. However, the PMLA court on Wednesday gave the banks right of only UBHL shares, and not Mallaya's entire property. The special court is yet to begin hearing on confiscation of properties that prosecution agencies have listed s that of Mallaya's
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