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Sale of Vijay Mallya's 7.4 million UBHL shares fetch 1008 crore, says ED

Mallya is at present based in London and extradition proceedings are on to bring him to India

Press Trust of India  |  New Delhi 

Vijay Mallya
File photo of Vijay Mallya

The sale of over 74 lakh shares held by absconding in the (UBHL) Limited by Bangalore-based Wednesday fetched Rs 1,008 crore, the ED said.

The (ED) said the shares attached by the agency as part of its money laundering probe against the liquor baron were lying with and the High Court had recently ordered the to surrender these "in favour of" the (DRT).

Subsequently, the ED said, the of the DRT, published a notice early this month for the sale of a total of 74,04,932 shares of UBHL.

"Based on the submissions made and proactive steps taken by the ED and in view of the large outstanding debts of the SBI consortium against and Vijay Mallya, a special allowed sale of shares on March 26.

"Subsequently, the shares were sold by the on Wednesday and an amount of Rs 1,008 crore has been realised," the agency said.

Officials said this was the first such sale of shares in this case and few more will be sold in the days to come.

These shares of UBL (United Breweries Limited) were held by UBHL and kept with the as security "in lieu of" a loan taken by Kingfisher Airlines, it said.

A large part of this loan taken from had been repaid, the agency said, and these pledged shares were now more or less "free from encumbrances and only nominally under the pledge of the bank."

The ED had attached these shares under the Prevention of Money Laundering Act (PMLA) to ensure that they were not "alienated" or sold by during the course of investigation and also to ensure that they were sold by government agencies at a later stage.

The agency said it had filed a "detailed statement" before the special in and the HC to ensure these shares are not sold off by the accused.

is at present based in and extradition proceedings are on to bring him to The ED and the CBI are probing parallel criminal cases against him for an of Rs 9,000 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, March 27 2019. 16:55 IST