The shares were seized by investigation agencies and then disposed of to recover some of the Rs 9,000-crore in outstanding debt that Mallya owes to a consortium of banks, led by State Bank of India.
Even as fugitive liquor baron Vijay Mallya has questioned the bailout of Jet Airways, but not Kingfisher Airways, Indian banks on Wednesday recovered Rs 1,008 crore after selling shares belonging to United Breweries Limited.
The shares were seized by investigation agencies and then disposed of to recover some of the Rs 9,000-crore in outstanding debt that Mallya owes to a consortium of banks, led by State Bank of India.
Explaining details of the recovery of shares, the ED said that during the probe in the Kingfisher Airlines' case, they found substantial assets in the form of 74,04,932 shares that belonged to UBL and were pledged into Yes Bank's custody.
"Further probe revealed that the majority of the sum owed to the bank had already been repaid," said ED in a statement, adding that these pledged shares were more or less free from encumbrances and only nominally under the pledge of Yes Bank.
So, to secure these shares from alienation and to compel Mallya to return, the ED stated that they took a "proactive step" and appealed the court to freeze these shares.
Subsequently, Yes Bank received a notice from the Debt Recovery Tribunal in Bengaluru, on behalf of the consortium of banks on July 7 last year, by which the Yes Bank was directed to transfer the shares to the tribunal's recovery officer.
After the tribunal published a notice on March 11 for a sale of these shares, UBHL moved an application in a Special Court (PMLA), Mumbai to seek a stay.
The court, however, permitted for the sale to go ahead on March 26, thereby realising a sum of Rs 1,0008 crore.
On Tuesday, Mallya had posted a series of tweets lashing out at the state-owned banks for "double standards" under the NDA government for their intervention to bail out Jet Airways while the same lenders caused his Kingfisher Airlines to "fail ruthlessly".
Lost And Found
The ED said that during probe in the Kingfisher Airlines’ case, they found substantial assets in the form of 74,04,932 shares that belonged to UBL and were pledged into Yes Bank’s custody. They were frozen and sold later.
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