The Stock Holding Corporation of India Limited (SHCIL) has transferred shares worth Rs 100 crore of United Breweries (UB), held directly and indirectly by Vijay Mallya, to the central government.
Quoting sources familiar with the development, Indian Express (IE) reported that Enforcement Directorate (ED) has already started the process to confiscate the assets of Mallya, chairman of the now-defunct Kingfisher Airlines.
The process got underway after the ED wrote to SHCIL two months ago, directing the depository to transfer the title and rights of un-pledged shares of UB under section 9 of the Prevention of Money Laundering Act (PMLA), IE reported.
The ED is in a process of confiscating assets of Mallya in connection with the defaulted loan of over Rs 6,000 crore by Kingfisher Airlines.
The report states that 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.
Earlier in February, a special court had confirmed the agency order to attach Rs 4,200-crore assets of Mallya and others. According to PMLA norms, if the accused has been declared a proclaimed offender, the special court can pass orders for confiscation of the property attached by ED.
In its complaint, ED stated that Kingfisher Airlines allegedly "participated in criminal activities", which led to the "generation and acquisition" of Rs 900 crore, and was "involved with the concealment, possession, acquisition, and use of the proceeds of (the) crime". The complaint further claims that Mallya was allegedly an "active participant in the generation of proceeds of crime and the activity of money laundering" under the PMLA.
ED in its complaint also claimed that the absconded liquor baron hid assets of about Rs 1,760 crore through a dozen shell companies abroad, reported IE.
Mallya is currently staying in London. Earlier in April, Mallya was arrested in Scotland Yard, but was released with a few hours on conditional bail.
Britain's Serious Fraud Office (SFO) has also reportedly launched a probe against the liquor baron for alleged "money laundering" in the UK and other countries.
