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Wednesday , 22 November 2017
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ED to attach Mallya’s assests worth Rs 4,200 crore

A special court has given the go ahead to the Enforcement Directorate (ED) to attach the assets of liquor baron Vijay Mallya and his associates. The book value of assets is Rs 4,234.84 crore and its market value is Rs 6,630 crore. The ED had issued the order to attach Mallya’s assets in September last year. The order has now been confirmed by a special court. The order to attach the properties has been issued under the provisions of the Prevention of Money Laundering Act (PMLA). The assets include farmhouses, flats, fixed deposits (FDs), and shares among others that belong to Mallya and associated firms.

It has been alleged that the assets were created from the proceeds generated through criminal activity. ED claims that Mallya criminally conspired with Kingfisher Airlines (KFA) and the United Breweries Holdings Limited (UBHL) to procure funds through various banks. Till date, the principal amount of Rs 4,930.34 crore has not been paid to the banks.

Mallya had also allegedly held a huge number of shares worth a staggering Rs 3,600 crore in group companies. This acts as evidence that even when Mallya and his associates had enough money, they were unwilling to clear their bank loans.

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