- Postponement of Prevention of Money Laundering Act till 18 January
- During this, Mallya or other affected parties can appeal in the Bombay High Court.
- Banks to get Rs 11,000 crore from selling assets of Mallya
The Prevention of Money Laundering Act (PMLA) court allowed the banks to use the confiscated assets of Vijay Mallya (63). The news agency quoted the sources of Enforcement Directorate (ED) on Wednesday. However, this order will remain postponed till January 18. Meanwhile, Mallya or other related parties can appeal in the Bombay High Court.
Mallya was declared a fugitive by the PMLA court last year
According to the report, Mallya’s confiscated assets are high in financial securities like shares. In February last year, the ED had said in the PMLA court that if the banks sell Mallya’s assets, they will have no objection. The consortium of SBI-led banks claims that Mallya owes an interest of Rs 6,203.35 crore and 11.5% per annum on this amount since 2013. According to an estimate, banks can recover Rs 11,000 crore by selling assets of Mallya. On January 5 last year, the PMLA court ordered Mallya to be declared a fugitive economic offender and confiscate his assets.
Mallya fled to London in March 2016. He is undergoing extradition case. Mallya has been saying that he had taken a business loan for Kingfisher Airlines, not private. He was a guarantor, that does not mean he was a fraud. Mallya has also offered to repay the loan several times.