TIL Desk/Business/London/ The official liquidator appointed by the Karnataka High Court on Wednesday opposed a plea by banks to restore the confiscated properties of fugitive economic offender Vijay Mallya to them. A consortium of banks led by State Bank of India had filed an application before the special court of MS Azmi in Mumbai to liquidate Mallya’s assets so that they can recover Rs 6,203.35 crore with annual interest at 11.5 per cent payable since 2013.
Earlier, the Enforcement Directorate informed the special court that it has no objection to restoring Mallya’s properties to the lenders if they gave an undertaking to return the money recovered by them to the court later. However, opposing banks’ plea, the official liquidator said, “at present there are several creditors, including workmen and financial institutions, other than the applicant the bank, who also have legitimate claim on these properties.”
These properties officially belong to United Breweries Holdings, which Mallya sold to the British liquor giant Diageo. These properties, both movable and immovable, are valued at over Rs 5,000 crore. The official liquidator further said it would be in public interest that these properties are restored to him so that the interest of all creditors, including the applicant banks, can be “safeguarded”.
