Application was filed by consortium of 12 banks which was led by State Bank of India (SBI) against the billionaire Vijay Mallya seeking release of assets that the enforcement directorate has attached so that this can be sold immediately to recover the debts but senior counsel Amit Desai representing Mallya opposed the same.
The application was filed under the Prevention of Money Laundering Act (PMLA) by the consortium before special CBI Court in Mumbai.
Desai representing Mallya is of the view that other remedies where available to the consortium, also they should opted to file case before civil forum and not before this court. These issues would have been decided by Karnataka High Court if they really want to settle.
Further added Mallya is of the view that everything should be sold off and the money should be handed over to the entire people home to he owes. Also it was suggested that one retired judge should be appointed to sell off everything without involving Mallya.
An application was filed before Karnataka High Court not only by banks but also the employees of the Kingfisher and every other entity. But he is of the view that employee were not the part of the proceeding as they wear only screaming on television.
The principal amount Mallya owes to bank is around rupees 5,000 for which risen to around rupees 12,000 with the 11.5 percent interest that has been mounting because of non-payment of dues.
The people who are involved in the case of the view that investigating agencies has attached Mallya’s property which consisted of share of some of his company and the attachment was worth only rupees 2000. As the share prices rise year by year it stake have reached rupees 15,000 crore and thus there is ample for everyone to get their share.
The lawyer representing consortium raised contention that Mallya had been already declared fugitive and attached property should go to those who can legally and entitled like SBI and others. Further added that no one has idea when will he come back until then public money cannot be kept in abeyance. There are various other interventions in the case but the SBI consortium held first claim because of various orders passed by this court and this is the only Court where he can seek relief as it is the court which has passes orders of attachment.
Advocate DP Singh on the behalf of enforcement agency(ED) corrected the argument made by consortium lawyer and stated that property which is attached cannot be given up literally and in case if Mallya is not held guilty by the trial court then advocate security needs to be taken from the bank. The advocate representing consortium said that they had already promised to give an undertaking of the sword before the depth recovery tribunal.
It was brought to the notice of court by Desai that the attachment of the property is done was not in consideration with the due course of law. Desai shared his view when SBI offered undertaking for a guarantee that which bank service and which does not is the only matter of time these days this current is not maintainable.
Courtesy/By: Renu Kathale
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27 Jun 2019
