ED takes possession of Vijay Mallya’s stake in United Breweries

Radhika Dhawad | May 22, 2017 20:11

Vijay Mallya's
Vijay Mallya

The Enforcement Directorate has taken possession of the stake of liquor baron Vijay Mallya’s company United Breweries as well as his stakes in other listed companies, a senior ED official told a leading daily.

Almost the entire direct holding and over a little quarter of the indirectly held stake of United Breweries is pledged with the banks. According to media reports, Heineken, a Dutch beer company, recently approached the banks to purchase all of Mallya’s United Breweries pledged with them. Heineken owns slightly more than 43% in United Breweries that makes Kingfisher beer.

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The ED, which is hopeful to get a confiscation order as soon as possible, has attached around Mallya’s Rs 9700 crores worth movable and immovable assets. It has also taken the possession of almost 80% of the same.

Mallya owns around 8% shares directly in United Breweries, and another 22% through privately held firms. Mallya directly owns around 7% in United Breweries Holdings, and some shares in United Spirits too. Mallya, who’s labelled as a ‘willful defaulter’ by banks, owes lenders around Rs 8191 crores as on December 31, 2016.