Banks can use Vijay Mallya's mobile assets to cancel the debt
MUMBAI: A special court here has allowed a consortium of 15 banks led by the State Bank of India (SBI) to use the movable property of the former liquor baron Vijay Mallya Towards the payment of your debt.
The assets, which comprise financial values such as the shares of United Breweries Holdings Ltd (UBHL), were adhered to by the Special Prevention of Money laundering Court law (PMLA) in 2016 when he declared Mallya a proclaimed criminal.
In accordance with the provisions of the Code of Criminal Procedure, a court orders the seizure of a person's personal property after he or she has been declared a criminal.
A person against whom an arrest warrant has been issued can be declared a proclaimed criminal if the court believes he or she has fled or is evading the execution of the order.
The bank consortium previously filed an application with the special court, seeking the release of Mallya's movable property to be used for repayment of the loans granted.
Lead lawyer Rajeev Patil, who appeared for the consortium, said Tuesday that the special court lifted the embargo on movable property.
However, the court suspended its order until January 18 to allow the parties involved to approach the Bombay high court on appeal.
Lead lawyer Amit Desai, who appeared for Mallya, said the court ordered the lifting of the asset embargo, which are actions of UBHL.
However, we do not know if the court has ordered that the assets be restored to the SBI or the consortium. We are waiting for the copy of the order for clarity, said Desai.
Mallya, who is accused of money laundering by the Compliance Address , fled from India in March 2016 and is now based in London.
The lenders in their application said they want to liquidate assets to claim more than Rs 6,000 crore.