Kingfisher Airlines Lenders seek to intervene at the PMLA Appellate Tribunal

A consortium of banks has filed an intervention application before the PMLA Appellate Tribunal, in an appeal by United Breweries Holdings Ltd. (UBHL) against an order passed by the Enforcement Directorate (ED)..One of the many agencies probing the Vijay Mallya fraud is the ED. The probe pertains to loans advanced by the consortium members to Kingfisher Airlines, which were guaranteed by UBHL and Mallya himself..Just recently, the SEBI had also barred Mallya and two others from the capital markets for diversion of funds..Based on a criminal complaint filed by the consortium against Mallya and his operating entities, the CBI had registered an FIR in August 2016. Pursuant to the filing of the FIR, the ED registered a criminal case and passed a provisional order attaching movable and immovable properties of the UBHL and Mallya, among others. The Adjudicating Authority established under Prevention of Money Laundering Act (PMLA) had then passed an order confirming the decision of the ED in February 2017..UBHL then filed an appeal before the Appellate Tribunal challenging the February 2017 order passed by the Adjudicating Authority, New Delhi that confirmed attachment of properties..While the above proceedings were underway, the Debt Recovery Tribunal (DRT) Bangalore, in January 2017, passed an order holding Kingfisher, UBHL and Mallya and another jointly and severally liable to pay a sum of Rs. 6,200 crores to the consortium of banks together with interest at 11.50% p.a..The consortium is now claiming that they have a legitimate interest in all the properties belonging to the Kingfisher, UBHL, and Mallya, including movable properties attached by the ED, especially in view of the DRT order. Accordingly, while seeking to intervene in the appeal, the consortium wants the Appellate Tribunal to release the properties attached, in their favour, so that the sale process can begin..The consortium has also sought the dismissal of the appeal filed by UBHL..Dua Associates lawyers Robin David and Chintranshul Sinha are appearing on behalf of the consortium.