Vijay Mallaya assets: ED to appeal before High Court

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Vijay Mallaya assets: ED to appeal before High Court 

The Enforcement Directorate (ED) has decided to file an appeal against the order of the Appellate Tribunal in which the tribunal set aside the attachment of flats owned by Kiran Mazumdar Shaw and Vivek Mathias in Kingfisher Towers in Bengaluru which were attached by the ED in connection with Vijay Mallya's Kingfisher Airlines Limited (KAL) case.

The Enforcement Directorate (ED) has decided to file an appeal against the order of the Appellate Tribunal in which the tribunal set aside the attachment of flats owned by Kiran Mazumdar Shaw and Vivek Mathias in Kingfisher Towers in Bengaluru which were attached by the ED in connection with Vijay Mallya's Kingfisher Airlines Limited (KAL) case.

"The ED has attached the said properties of M/S UBHL after conducting proper verification. During the investigation before attachment, M/S UBHL had stated that with respect to the flats of Kingfisher Tower, Bengaluru, no sale deed was executed nor registered with the registrar of properties. Thus all the properties vest with M/S UBHL. Accordingly, the same was attached provisionally and the Ld. adjudicating authority after going through the evidence have confirmed the provisional attachments," clarified the agency.

According to sources, Shaw had purchased the flat in 2012 for Rs 26 crore whereas Mathias paid over 49 crore to buy flats in the Kingfisher Tower, Vijay Mallya's housing project, Kingfisher Towers. During the investigation, ED attached several flats of Kingfisher tower.

The tribunal order of setting aside the attachments is based on the fact that no evidence on the record established any or relation with United Breweries and Prestige Estate Project Pvt Ltd (UBHL).

"It may be mentioned here that M/S KAL was 100 per cent subsidiary of UBHL. M/S UBHL has given a corporate guarantee on behalf of M/S KAL for obtaining a loan. Investigations also revealed that substantial portions of loans obtained by M/s Kingfisher Airlines were siphoned overseas under various pretexts. Therefore, UBHL being a corporate guarantor it's properties was attached under the provisions of PMLA 2002, which allows attachments of properties on the basis of value equivalent if proceeds of crime are not available," said the Enforcement Directorate.

The agency also claims that the book value of the properties mentioned in the press reports was to the tune of approximately Rs 60 crore which is very minuscule as compared to the total value of the property attached/seized by the ED aggregating to the tune of Rs 12,500 crore.