Mallya loan fraud: PMLA court allows parties to intervene
The official liquidator appointed by the Karnataka HC, too, approached the PMLA court.
Mumbai: The special Prevention of Money Laundering Act (PMLA) court on Friday allowed the intervention application of all parties that have an interest in the property of Vijay Mallya attached by the Enforcement Directorate (ED). The court will now start hearing the plea filed by the ED to declare Mallya a fugitive economic offender from October 22.
The lawyer on behalf of ED on Friday informed the court that they are not objecting to any of the intervention applications following which the special judge M.S. Azmi allowed the intervention applications filed by a host of entities.
The entities include Mallya’s stepmother Ritu Mallya, Heineken NV and the official liquidator appointed by Karnataka high court, among others. The applicants want to be heard before any order is passed to confiscate properties worth Rs 4,234.84 crore belonging to the beleaguered businessman.
According to interveners the probe agency has attached their properties. According to the application filed by advocate Annapurna Bordoloi on behalf of Mallya’s stepmother the ED had falsely attached 17% of shares of two companies that belonged to her. She has sought to be heard before the ED confiscates it.
The official liquidator appointed by the Karnataka HC, too, approached the PMLA court. The liquidator was appointed to take over UBHL, after a single-judge bench of the Karnataka HC passed the order to wind up UBHL in 2017. This was done to recover the money owed to banks and others. Lakshmi Iyengar, counsel for the official liquidator, was directed by the Karnataka HC to appear and make submissions before the special court earlier this month.
Mallya is contesting his extradition case in London filed by the Indian government on behalf of the ED and CBI, who have cases against him for an alleged bank loan default. of around Rs 9,000 crore, including interest.
The ED has so far attached assets worth Rs 4,234.84 crore, claiming these properties had direct or indirect connection with Mallya and his two companies, Kingfisher Airlines Limited (KAL) and United Breweries Holdings Limited (UBHL).