Banks allowed to liquidate Mallya’s movable assets to repay debt
A special court in Mumbai has permitted a consortium of 15 lenders, led by State Bank of India, to use the movable assets of former liquor baron Vijay Mallya towards repayment of his debts.
The assets, comprising financial securities like shares of the United Breweries Holdings Ltd (UBHL), were attached by the special court under the Prevention of Money Laundering Act (PMLA) in 2016 when it declared Mallya a proclaimed offender.
Under the Criminal Procedure Code, a court can attach a person’s movable assets after he/she has been declared a proclaimed offender.
The consortium of banks earlier filed an application before the special court, seeking release of Mallya’s movable assets to use them for repayment of loans given to him.
