SBI consortium sold Vijay Mallya’s shares for Rs 5,825 crore, recouping 70% of the loss.

On Wednesday, a consortium led by the State Bank of India (SBI) sold fugitive businessman Vijay Mallya’s shares in the United Breweries (UB) group to Heineken, recovering roughly 70% of their Rs 9,900 crore defrauded loan money.

Previously, the bank sold Mallya’s stake in (UB) and United Spirits Ltd (USL) for Rs 1,357 crore. They are also in the process of selling Rs 800 crore more shares before the end of the fiscal year on June 25. Mallya allegedly owned the majority of these benami shares. The Wednesday transaction was carried out under a special arrangement between the Enforcement Directorate (ED), which had attached these shares in the money laundering case, the SBI-led consortium of banks, and the UB’s current owner Heineken, to ensure that the market price of the company’s shares was not affected.

The block purchase of shares was completed prior to the opening of the stock exchange, where Heineken had purchased the share. The sold share represented 15% of the company’s total share capital. The ED had previously attached these shares in the case, and with court permission, it recently transferred them to an SBI-led consortium that entered into an agreement with Heineken to encash the shares.
Mallya is currently in the United Kingdom, and the Indian government is attempting to extradite him in the case.

Mallya was declared a fugitive economic offender by the court. Once a court declares an accused fugitive economic offender, the agency has the authority to seize all of his assets, including those unrelated to the crime, which become government property and can be auctioned to recoup the loss.
Mallya allegedly defrauded the IDBI of Rs 900 crore and the SBI-led consortium of 17 banks of Rs 9,000 crore. He took out bank loans with his personal guarantee, UB Holdings’ corporate guarantee, and Kingfisher Airlines’ inflated brand guarantee.

The court declared Mallya a fugitive economic offender. When a court declares an accused fugitive economic offender, the agency has the authority to seize all of his assets, even those unrelated to the crime, which become government property and can be auctioned to recoup the loss.
Mallya is accused of defrauding the IDBI of Rs 900 crore and a consortium of 17 banks led by SBI of Rs 9,000 crore. He obtained bank loans using his personal guarantee, the corporate guarantee of UB Holdings, and the inflated brand guarantee of Kingfisher Airlines.