Mumbai: The Prevention of Money Laundering Act (PMLA) court in Mumbai which deals with offences related to money laundering has allowed banks which had lent money to fugitive liquor baron Vijay Mallya to utilise the seized assets, Enforcement Directorate (ED) sources said on Wednesday.
The court said the ruling has been stayed till January 18, until which the parties affected by the order could appeal to the Bombay High Court.
According to sources, the seized assets mainly comprise financial securities, such as shares.
In February last year, the ED had told the special PMLA court that it had no objection to the liquidation of confiscated assets by a consortium of banks, led by the State Bank of India (SBI).
The lenders want to liquidate the assets to claim Rs 6,203.35 crore along with interest of 11.5 per cent per annum payable since 2013.
A special PMLA court had on January 5 last year declared Mallya a fugitive economic offender and directed that his properties be confiscated.
He had fled the country in March 2016 and has been living in the United Kingdom since then.
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