Hearing on properties of Vijay Mallya deferred
The State Bank of India (SBI) and other lenders have sought the restoration of properties, saying they are interested parties in the property.
Mumbai: The special PMLA court in Mumbai on Wednesday adjourned the hearing on the Enforcement Directorate’s application for the confiscation of Vijay Mallya’s properties till April 8.
The State Bank of India (SBI) and other lenders have sought the restoration of properties, saying they are interested parties in the property. The official liquidator (OL) of the Karnataka high court has also requested the court to give the properties to it and it will cover the interest of all parties while giving a share.
On Wednesday, the OL appointed by the Karnataka high court opposed a plea by a consortium of banks led by the SBI to restore the properties of a beleaguered businessman to the bank.
The banks are seeking rights over properties worth Rs 6,203 crore, including shares held by Mallya, so that they could recover their dues by selling them. However, when this matter came up for hearing before special judge M.S. Azmi, the OL submitted its objection to the plea.
The OL appointed by the Karnataka high court for the winding up of United Breweries Holdings Limited (UBHL) requested the court not to restore the properties to the SBI but instead restore it to the liquidator. The OL stated that the bank is not the only creditor of the company and the liquidator has to secure the interest of all the creditors of the companies. According to the OL, if properties were restored to the OL, it would sell it and secure the interest of all creditors by distributing the amount to creditors.