Explorer

Court allows sale of Vijay Mallya's 7.4 mn United Breweries shares worth Rs 1000 crore

PMLA court Tuesday rejected United Breweries Holdings' plea to stay the proposed sale of shares worth around Rs 1,000 crore of its erstwhile subsidiary United Breweries (UBL) by a court-appointed liquidator.

PMLA court Tuesday rejected United Breweries Holdings' plea to stay the proposed sale of shares worth around Rs 1,000 crore of its erstwhile subsidiary United Breweries
Special judge M S Azmi rejected their plea on the ground that the court may not have the powers to grant a stay on the proposed sale.
New Delhi: In a major attempt to partly recover the whooping multi-crore outstanding debt obligations from fugitive liquor baron Vijay Mallya, a PMLA court Tuesday rejected United Breweries Holdings' plea to stay the proposed sale of shares worth around Rs 1,000 crore of its erstwhile subsidiary United Breweries (UBL) by a court-appointed liquidator. Special judge M S Azmi rejected their plea on the ground that the court may not have the powers to grant a stay on the proposed sale. This is the first sale of Mallya's confiscated assets by the authorities since he left the country in March 2016. United Breweries shares closed over 2 per cent up on the BSE at Rs 1,347.90 Tuesday and the sale of 74,04,932 shares at this price would fetch around Rs 999 crore. Beer major Heineken is the largest shareholder of UBL with a 44 per cent stake. Earlier this month, it approached SBI to sell them, following which the bank moved the Karnataka High Court seeking rights over a 2.8 per cent stake in UBL on March 18. The shares are currently held by a court-appointed liquidator and was previously owned by UBHL, the erstwhile holding company of all firms owned by Mallya. UBHL is currently owned by the world's largest liquor company Diageo of England. Earlier this month, the Debt Recovery Tribunal transferred the shares (about 7.4 million) to a court-appointed liquidator. These shares were earlier attached by the ED, which is investigating allegations of money laundering against Mallya. UBHL last Friday moved the special PMLA court to stop the sale of 74,04,932 shares of UBL scheduled for Wednesday. These shares were pledged as collateral by the then owner Mallya through one of his companies UBL. Mallya was declared as a fugitive economic offender by domestic courts earlier this year. Mallya-promoted Kingfisher Airlines, which ceased operations in December 2012, owes over Rs 9,000 crore to a clutch of lenders led by State Bank of India. UBHL had sought a stay on the share sale pointing out that these shares along with other properties are already attached by the ED and have multiple claimants including the ED, the banks and DRT. They also claimed DRT and banks ignored the order passed by the Karnataka High Court stating that the sale of the shares would be subject matter of the special PMLA court. The Bengaluru bench of the DRT had on March 11 issued a notice to sell these shares. The DRT had stated that shares were being sold to partly recover the secured debt of Rs 6,203.35 crore towards the loan taken by Kingfisher Airlines. Along with interest and penalties banks are demanding Rs 9,000 crore from Mallya.
View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

India Confirms Meeting Between India, Canada Intel Officials, But Maintains No Evidence Shared On Nijjar Case
India Confirms Meeting Between India, Canada Intel Officials, But Maintains No Evidence Shared On Nijjar Case
Jharkhand Elections: INDIA Bloc Arrives At Seat-Sharing Agreement, Friendly Fight In 3 Seats
Jharkhand Elections: INDIA Bloc Arrives At Seat-Sharing Agreement, Friendly Fight In 3 Seats
Pawar Family Hosts Separate Diwali Events For 1st Time As Ajit, Sharad Gear Up For Maharashtra Polls
Pawar Power Split: Pawar Family Hosts Two Diwalis For 1st Time As Ajit, Sharad Gear Up For Polls
4 Sanitation Workers, Including Two Women, Killed After Being Hit By Train In Kerala's Palakkad
4 Sanitation Workers, Including Two Women, Killed After Being Hit By Train In Kerala's Palakkad
Advertisement
ABP Premium

Videos

Chirag Paswan Exclusive Interview: Chirag Paswan with Megha Prasad Watch The Teaser | ABP LIVEDigital Arrest Explained: What is Digital Arrest, and How to Avoid It? Key Points to Keep in MindAniruddhacharya Interview: How Did Baba Aniruddhacharya Gain Knowledge Without Attending School as a Child?Diwali 2024: Akshardham Air Quality Deteriorates to Hazardous Levels Post-October 30

Photo Gallery

Embed widget