Vijay Mallya Case: Bank Will Recover the Debt by Selling Property of Fugitive Mallya: The special court of the Prevention of Money Laundering Act (PMLA) has allowed State Bank of India (SBI) and several other banks to recover the debt by selling Vijay Mallya‘s confiscated property. It may be noted that earlier the Enforcement Directorate (ED) said that it had no objection to the recovery made against the accused.
ED Sources:Prevention of Money Laundering Act Court in Mumbai allowed banks that lent money to Vijay Mallya to utilize seized assets. Court also said ruling has been stayed till January 18,until which all parties affected by the order can appeal to the Bombay High Court(file pic) pic.twitter.com/oMSrtR8K56
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Mallya’s lawyers had objected to the court’s decision, stating that only the Debt Recovery Tribunal can decide. However, the special PMLA court has stayed the decision till January 18, so that Mallya can appeal against this order in the Bombay High Court.
Let me tell you that Mallya is facing litigation in the UK in the case of banks not repaying loans worth about nine thousand crores, bank fraud, and money laundering.
It is worth noting that in December, the London court reserved its verdict in the Vijay Mallya case. The court is likely to pronounce the verdict on Vijay Mallya in January. At the same time, a petition to be declared bankrupt on Vijay Mallya can be dismissed or this petition can be canceled.
It is believed that until the Indian Supreme Court does not agree on the offer made by Mallya, this petition can also be postponed. The UK court may consider the relevance of Indian rules in this case.
The High Court had, in a previous judgment, refused to reverse the order banning the transactions of Mallya’s assets worldwide and upheld the decision of an Indian court that a group of 13 Indian banks were 13 thousand crores is authorized to repay the debt.
After this, banks started the compensation exercise as an order to seize the property. Under this, a bankruptcy petition was filed requesting the confiscation of Mallya’s property in the UK to repay the debt.
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