Massive victory for India: Banks recover Rs 1,008 crore in Vijay Mallya case following relentless ED efforts

In yet another massive victory for India in the Vijay Mallya case, the consortium of banks led by SBI to whom the fugitive liquor baron owes over Rs 9,000 crore in defaulted debt have been able to recover Rs 1,008 crore of his assets, thanks to the Enforcement Directorate's pro-active steps.

The funds were recovered by selling the shares of United Breweries (Holding) Ltd. which was attached to Yes Bank against a loan by Kingfisher Airlines.

Republic Media Network, through sources, has learned how arduously the ED pursued the PMLA case and ensured the money owed by Mallya was given back to the banks.

After the Special Court (PMLA) declared Mallya as a proclaimed offender in November 2016, some pledged and unpledged shares were attached in the application of the ED. Owing to this, the shares were frozen by the ED and hence Yes Bank wasn't able to comply with the directions of the recovery officer who asked for the shares to be transferred.

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Later, the case went to court and the Karnataka High Court which ordered the surrender of the shares to the Recovery Officer adding that the shares will be subject to the Special Court under the provisions of the Act.

Following this, UBHL applied for a stay on the said shares. But the PMLA Special Court allowed the sale of shares and the money owed by Mallya's company was recovered by the consortium of banks led by SBI.

READ | After UK Government Signs Off On Vijay Mallya's Extradition, Here's What's Next

Mallya's extradition is in final stages. On February, the UK Secretary of State, Sajid Javid, signed the order for the extradition of fugitive liquor baron Vijay Mallya.

It was less than two months ago that the Westminster Magistrates' court had ordered the extradition of Mallya to India, with Chief Magistrate Judge Emma Arbuthnot prima facie finding a case against Mallya for fraud, conspiracy and money laundering. The order had then gone to the UK Home office for approval. 

Republic Media Network had also learned from sources that the former Kingfisher boss the strategy he applied in his to attempt to prevent India from accessing his Swiss bank account details.