ED to sell large chunk of Vijay Mallya's unpledged shares in United Breweries to raise over Rs 4,000 cr
Vijay Mallya's shares were transferred to ED by the Stock Holding Corporation of India under the Prevention of Money Laundering Act (PMLA)
Mumbai: The Enforcement Directorate (ED) plans to raise over Rs 4,000 crore by selling off a large part of unpledged shares owned by fugitive liquor baron Vijay Mally ain United Breweries. This amount is nearly half of the money Mallya owes to lenders, according to a report in The Economic Times.
Officials close to ED told the ET that it had secured custody of 4 crore unpledged shares. This constitutes to about 15.2 percent stake that Mallya owns in United Breweries. The shares were transferred to ED by the Stock Holding Corporation of India under the Prevention of Money Laundering Act (PMLA), sources told the ET. The remaining 27 lakh shares will be soon transferred, the report said.
The shares will be sold under section 9 of the PMLA, the report said, As per the Act, after an order of confiscation, all the rights and titles in such assets rest with the Centre. Mallya's shares are estimated to be Rs 4,327 crore, as per Thursday's closing price which stood at Rs 1,081.85, the Moneycontrol said.
The total attachment made by the agency in this case has now shot up to Rs 8,044 crore as it had attached assets worth Rs 1,411 crore few months back
While ED is mulling options for its next action, it may not be "too keen" to accede to Vijay Mallya's request given the "gravity" of the PMLA case.
In September last year, the ED had issued the order, under the provisions of the Prevention of Money Laundering Act (PMLA), to attach the various properties including flats, a farmhouse, shares and Fixed Deposits (FD) among others in the name of Mallya and associated firms.