In a move which would fetch the lenders about Rs 11,000 crore, Prevention of Money Laundering Act (PMLA) court in Mumbai dealing with money laundering offences has allowed banks that lent money to Vijay Mallya to utilize seized assets. In the line of the order, a consortium of 15 banks led by State Bank of India was permitted to utilise the assets of the embattled liquor baron. With this, the lenders can liquidate the assets to claim Rs 6,203.35 crore, along with interest of 11.5% per annum payable since 2013. The court also stated that all parties affected by the order can appeal at the Bombay High Court till January 18.
Vijaya Mallya, who fled to the UK in March 2016 was declared a fugitive economic offender (FEO) by the PMLA court under the Fugitive Economic Offenders Act last year. He was granted permission to appeal against his extradition order, which is scheduled in the Royal Courts of Justice in London for February.
