Loan default cases : ED starts process of confiscating Mallya's assets

Mumbai: The Enforcement Directorate, India's premier anti-money laundering agency, has started the process of confiscating Vijay Mallya's assets that were frozen during the course of money laundering investigation against the embattled liquor baron.

ED that works under the revenue department of India's finance ministry has powers to to do so under section 9 of the Prevention of Money Laundering Act.According to sources saying that the Stock Holding Corporation of India has transferred to the central government the rights and title of shares worth Rs 100 crore. These shares were held either directly or indirectly by Vijay Mallya in the United Breweries that claims to be an "undisputed king of Indian beer market".

For confiscating said assets, two months ago the ED had written to SHCIL directing the depository to transfer the rights and title of 'un-pledged' shares worth Rs 4,000 crore of UB, United Spirits and McDowell Holdings, held by Vijay Mallya and associate firms. A group of 17 banks claims Mallya owes around Rs 9,000 crore to them that includes interest money.

Mallya has been living in a self-imposed exile in the United Kingdoam and is at present facing an extradition trial proceedings in that for cheating banks and defaulting on loans worth Rs 9,000 crore that includes interest payment. Mallya left India on a diplomatic passport he had held at that time as a Rajya Sabha member. He had attended a parliament session on March 2 before leaving for the UK, according to reports.