The contempt petition in the Karnataka High Court has been filed only against liquor baron Vijay Mallya alleging breach of an oral undertaking given before the Debt Recovery Tribunal that they would not alienate unencumbered assets nor deal with them, Counsel for a consortium of banks clarified on Wednesday.
'I am indirectly related to VG Siddhartha. Excellent human and brilliant entrepreneur. I am devastated with the contents of his letter,' Mallya said on Twitter.
The enforcement agency is looking to ensure that no big deals or transactions, such as the one Mallya struck with Diageo for Rs 500 crore, take place.
The order brings an end to the nearly three-year legal battle in the Tribunal by the consortium, comprising 17 banks, to recover the money owed to them by the defunct airlines.
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Justice Ram Mohan Reddy asked Mallya to appear in court and bring along his passport.
The assets are estimated to be worth over Rs 6,000 crore.
The raids resulted in recovery of documents of some dummy firms linked to Mallya like Gold Reef Investments Ltd and McDowell Holdings Ltd.
The lenders have not ruled out selling the property to recover part of their loans to the company.
The petition has also made the Ministry of Finance and the bank as parties in the case.
Diageo asks Mallya to quit USL board; alleges fund diversion
Vijay Mallya on Wednesday gave a proposal to the Supreme Court to repay around Rs 4,000 crore (Rs 40 billion) loan to banks by September this year.
After being forced to resign as chairman of MCF, Mallya is now keen on increasing his stake in the company
Agency sources said that besides Mallya, his companies Kingfisher Airlines and United Breweries Holdings Limited have been named as accused in the FIR.
In fresh trouble for liquor baron Vijay Mallya, United Bank of India has identified United Breweries Holdings, the guarantor of grounded airline Kingfisher, as wilful defaulter.
In March this year, the banks tried to sell the Kingfisher House in Mumbai to recover a part of their dues.
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw issued notice to the airline and the central government seeking their replies within a week on PNB's plea.
Enforcement Directorate to approach court to attach industrialist's properties worth Rs 4,000 crore
Mallya left the country on March 2 and has had his passport revoked.
SBI has the highest exposure of Rs 1,600 crore to the beleaguered Kingfisher Airlines.
Women of the family rush to become directors of firms to meet Sebi deadline.
Diageo, under a share purchase agreement (SPA) with UBHL and various other sellers, had acquired 21,767,749 shares (14.98 per cent) in USL
This measure will ensure that the price of a scrip cannot move upward or downward beyond a limit set for the day.
The assets mentioned in the Sebi order are already in possession of the ED for violation of an anti-money laundering law by Mallya and PMLA overrides all other laws, providing ED first right over the assets.
A bench of Justice Vibhu Bakhru, which later decided to hear the matter on Thursday again, also said that the ailing airlines can be allowed to be represented by a lawyer in the proceedings to be conducted by the PSU bank against it.
By registering the fresh case, ED wants to strengthen its probe against the beleagured liquor baron and expedite a slew of actions it has initiated against him
Tag for defaults on nearly Rs 7,000 cr loans to long-grounded Kingfisher Airlines
A forensic audit has found possible 'irregularities and mismanagement' in advances and investments made by Mangalore Chemicals and Fertilizers to his other group companies.
The 12,350 sq mt Villa was once used by Mallya to host lavish parties in his 'good times'.
Kolkata-based United Bank of India, which had earlier declared Kingfisher Airlines and its four directors, including Mallya as wilful defaulters, on Tuesday identified UBHL, the guarantor of the grounded Kingfisher Airlines, also a wilful defaulter.
The final hearing in the case at the London magistrate's court to extradite Mallya to India is scheduled later this month.
The new Diageo management had asked Vijay Mallya to step down.
As per the existing process of law under the PMLA, the ED could confiscate the assets only after the trial in a case finishes which usually takes many years.
Buyer actor-producer Sachiin Joshi, who owns Viiking Media, has reportedly bought the villa, spread over 12,350 sq ft or three acre at Candolim.
Maruti Suzuki, Asian Paints, L&T, ONGC and Infosys have gained between 1%-1.5%.
SBI approaches Karnataka HC to arrest Mallya, impound passport, disclose full assets
Mallya will now be the Founder Emeritus of USL
Sources said a few other lenders were also contemplating a move to declare both Kingfisher Airlines and UBHL wilful defaulters.
RBI rule, applicable prospectively, also for non-group guarantors.
The bank had issued the notice alleging the carrier has wilfully defaulted in payment of outstanding dues of more than Rs 770 crore (Rs 7.7 billion).
Indian banks on Thursday rejected the loan repayment offer made by Vijay Mallya.
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