India: Vijay Mallya's United Breweries shares worth Rs 100 crore transferred to central government

The Stock Holding Corporation of India Ltd (SHCIL) has transferred the title and rights of shares worth Rs 100 crore of United Breweries Ltd (UBL), held directly and indirectly by Mallya, to the central government, Business Today reported on September 18.

According to a report in The Indian Express, the Enforcement Directorate (ED) had written to SHCIL directing the depository to transfer the title and rights of un-pledged shares of UBL, United Spirits Ltd (USL) and McDowell Holdings Ltd worth close to Rs 4,000 crore, held by Mallya and his associate firms, under section 9 of the PMLA.

The agency has attached 4 crore unpledged shares of UBL, 25.14 lakh shares of USL and 22 lakh shares of McDowell Holdings of Mallya, and some private companies allegedly linked to him, the report said.

In September last year, the Enforcement Directorate had issued an attachment order for worth Rs 6,630 crore against beleaguered businessman Vijay Mallya.

Under section 9 of the Prevention of Money Laundering Act (PMLA) rules, after an order of confiscation, all the rights and title in such property 'shall vest absolutely in the Central Government free from all encumbrances.'

In February, a special court had confirmed the Enforcement Directorate order to attach Rs 4,200 crore assets of the Chairman of now defunct Vijay Mallya and others, paving the way for their confiscation by the agency.

18 September, 2017