TaxTMI 
TaxTMI 
2025 (1) TMI 991
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....he Adjudicating Authority in Original Complaint No. 612/2016 (OC) vide which the properties of the appellants attached vide Provisional Attachment Order No. 11/2016 (PAO) dated 11.06.2016 were confirmed. The details of the said properties are as under:- Details of properties Sl.No. Description of the property Area adm. In the name of Value of the property (Rs.In crore) As per Govt. ready Reckoner,2009 Present Value as per Govt. ready reckoner,2016 01. 87/11, Rustomji Flat,Richmond Road, Richmond Town,Bangalore 291 Sq.Ft. United Breweries (Holdings)Ltd. 1.0(approx.) 3.32(approx.) 02. 604, HB, Wallace Apartments, Nashir Bharucha Marg, Grant Road, Mumbai 1561 Sq.Ft. United Breweries (Holdings)Ltd. 1.43(approx.) 3.10 03. Factory Building & land at Sl. No. 254/1, Thuthipattu, Village, Ambui Vaniyambadi Taluka, Vellore, District Tamil Nadu 4.50 Acres UB Global-a division of United Breweries (Holdings) Ltd. 0.8(approx.) 1.14 04. Land parcels situated in Biligen Vilage Kiragandoor Village, Madekuri, Kumboor Village. 28.71 Acres M/s Endeavour Estates Pvt. Ltd. 0.85 (approx.) 1.55 05. UB ....
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....inancial Officer of the company. The proposal dated 01.10.2009 for the sanction of the corporate loan of Rs. 950 crores, against which the above facilities were sanctioned, was signed and submitted by Sh. A. Raghunathan and was marked to the attention of Sh. B.K. Batra MD. While proposal was pending, vide letter dated 07.10.2009, Sh. A Ragunatham, giving reference to the meeting dated 06.10.2009 between Dr. Vijay Mallya and Sh. Yogesh Aggarwal, CMD, IDBI requested the bank to release a short terms loan of Rs. 150 crores for period of six months to meet certain critical obligation to overseas vendors. On the same day a memorandum was put up to the committee and the facilities were sanctioned though the company was having negative financial & negative net-worth, and the borrower, being a new client did not satisfy the conditions/norms stipulated in the corporate loan Policy of the bank Similarly in November 2009, vide order dated 04.11.2009, Sh. A. Raghunathan CFO, Kingfisher Airlines Ltd. gave reference of the meeting held between Dr. Vijay Mallya with the bank's CMD and sought an adhoc release of Rs. 200 crore pending sanction of the proposal for corporate loan of....
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....bill discounting facility availed by M/s Kingfisher Airlines Ltd. from Bank of Baroda. An amount of Rs. 1.27 crore was also utilized to service the interest on the loan of Rs. 200 crores availed by M/s Kingfisher Airlines Ltd. from M/s India Bulls Financial Services Ltd. Similarly, an amount of Rs. 1.13 crore was transferred to the account of M/s UB Engineering Ltd. to service a term loan taken by the said company. A major chunk of funds transferred to the Axis Bank Ltd. were used for foreign remittances towards lease rentals, purchase of aircraft parts etc. Since these remittances have gone outside the country, further inquiry can only be made by sending letters Rogatory for foreign investigation by taking up a regular case. Similarly, funds aggregating to Rs. 3.45 crore were paid into the bank account of the company in London. Since the funds were gone out of India further inquiry can be made only through sending a letter Rogatory for foreign investigation. On the basis of the preliminary enquiry report FIR No. RC BSM 2015E 0006 dated 26.07.21015 was registered by CBI-BS&FC, on the following allegations: a. Sh. Vijay Mallaya laid M/s K....
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....h section 409 IPC and also r/w 13(2) r/w 13(1)(d) of Prevention of Corruption Act 1988 and substantive offences thereunder: Based on the scrutiny of the facts, the Enforcement Directorate registered a case bearing no. ECIR/03/MBZO/2016 dated 25.01.2016, against the suspects namely M/s KAL, Dr. Vijay Mallya, Sh. A. Raghunathan and unknown officers of IDBI banks and others, as a prima facie case for commission of an offence of money laundering (sections 3 of the Prevention of Money Laundering Act, 2002) punishable under section 4 of the said Act was made out which requires investigation by ED. During the course of investigation under PMLA by ED, besides gathering record and other investigations, statements of several persons were recorded by the officers of Enforcement Directorate under the provisions of section 50(2) & 50(3) of PMLA. As the said statements reveal about the money laundering activities, substances thereof are reproduced as under: I. Statement dated 11.03.2016 of Ms. Mythili Balasubramaniam, Executive Director of IDBI In her statement recorded on 11.03.2016. she inter-alia stated that, she is presently designated as Executive Directo....
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.... new persons have been appointed in their place; that at present, Shri Vijay Mallya and Shri Srinivasula Reddy are the two Directors of the company; that his role consisted of accounting and auditing of financial transactions; that whenever there was a CFO, he was reporting to him or else he was reporting to the Managing Director; that Shri Vijay Mallya was the Managing Director through out and the CEO was Shri Sanjay Aggarwal, who came in October, 2010 and left somewhere in early 2014; that initially the erstwhile M/s Kingfisher Airlines Ltd. was 100% subsidiary of M/s UBHL; that post Air Deccan acquisition, the UB Group held about 60% (approx.) of M/s Kingfisher Airlines Ltd. and subsequently, came down to 15% to 20%; that M/s Kingfisher Airlines owned the property at Vile Parle EUR, a few aircrafts were acquired on finance lease viz. Six ATR-72, Two Airbus 320s, Two Helicopters, One Corporate Jet etc, that as far as heremembers, M/s Kingfisher Airliens Ltd. have taken loans from Axis Bank, ICICI Bank, Bank of India, Bank of Baroda, Central Bank, Federal Bank, Punjab National Bank, Punjab Sind Bank, IDBI Bank, State Bank of India, State Bank of Mysore, IndusInd Bank, Yes Bank, Un....
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.... Shri Vijay Mallya, Chairman that KFA brand in the aviation business clause has been assigned by M/s UBHL to M/s Kingfisher Airlines Ltd. and the deed of assignment signed by both the parties have been filed with the trade mark Registry; that M/s Kingfisher airlines has got the trade mark valued by M/s Grant Thornton for an amount of Rs. 4100 crore (approx.) and which was subsequently revised to the tune of Rs. 3400 crore that regarding negative lien on fleet of hire purchase/finance lease aircraft, the title of the finance lease aircraft will come to M/s KAL only upon the payment of the last installment of the financial lease payment; that since, the title is not currently with the company, the company undertook that upon the company getting the title after the expiry of the lease term, it will offer the same as a security to the bank; that regarding the Corporate Guarantee of UBHL, it is standard format of undertaking the loan repayment in the event of the borrower's failure to repay the loan and in the similar manner a personal guarantee was also issued by Shri Vijay Mallya; that the loan amount was utilized for the operational expenses/payments of the company; that they are fil....
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....payments to M/s UBICs, M/s UB Engineering, M/s UBHL and its subsidiaries; that they have received payments from UB Group & its associates; that it was Corporate Finance Department of the UB Group, Bangalore, who were taking the decisions of the payments with the concurrence of Shri Vijay Mallya; that the major ICDs have been negotiated/ arranged by Shri Vijay Mallya himself or Corporate Finance Department, Bangalore; that regarding small ICDs from time to time, the Treasury In charge from M/s KAL used to negotiate with the brokers and keep him informed of their efforts; that presently, he was not able to recollect the exact amount given to Formula 1 as there were two agreements with Force IndiaFormula 1 Team and all the payments were made according to the said agreement; that since M/s KAL was contemplating to start their international flights in mid-2008, Shri Mallya felt that the international motor grande is a good medium for advertising the brand in various countries especially in Europe & Middle East and therefore, decided that M/s KAL should sponsor Formula 1 team as in any event M/s KAL had already sponsored the Toyata Team with the same objective; that it was around USD 5 m....
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....s to books of accounts as the servers containing their financial and other data were not working since the time they were re-located from Mumbai to Bangalore in November, 2014. Efforts are being made to re-activate the server; that the funds have been utilized for making payments towards lease rent, Overseas Engineering vendors, Ground Handling expenses, inflight costs including catering. An end use certificate has also been obtained as per the requirement of bank and has been handed over to the IDBI Bank, who have acknowledged the same. Accordingly, CBI registered the FIR No. RC BSM 2015 E-0006 dated 29.07.2015 on the basis of the aforesaid facts revealed in the preliminary enquiry. As the suspects committed the Scheduled Offence, Enforcement Directorate register ECIR No. 03/2016 dated 29.01.2016, as the above facts revealed prima facie Commission of Offence of Money Laundering under Section 3 of Prevention of Money Laundering Act, 2002, punishable under Section 4 by the said suspect, ED conducted investigation and recorded the statement of the suspect and other persons under Section 50 of PMLA, 2002 and thereafter attached the properties vide PAO No. 11/2016 dat....
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....summoned to defend their interest. He contended that even the sanctioned plan by BBMP prohibits all common areas of UB Tower from being alienated. Accordingly, he stressed, any attachment and subsequent alienation of these common areas would be in violation of the said sanctioned plan. He pointed out the judgment passed by Ld. Special Judge, PMLA Court in Special Case No. 7 of 2017 wherein at page no. 18 (1st para) it is mentioned that: "As far as claim of M/s. United Spirits Limited (USL) is concerned, it is pertinent to note that the claimed area is part of attachment and said attachment order has been challenged before the Hon'ble Appellate Tribunal under the Prevention of Money Laundering Act, 2002 in Appeal No. 2524 of 2018. The present claim of USL, is also pending for consideration before the Hon'ble Appellate Tribunal at New Delhi. Therefore, this Court can not independently consider said claim. Resultantly, the claim of USL and other intervenors stands rejected." Accordingly, he submitted that the right of the present appellant was not decided by the Trial Court as the appeal was pending before this Appellate Tribunal. 4. Ld. Counsel for the appellant M/s....
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....here is no direct or indirect evidence against the appellant for commission of any crime. He is a Bonafide purchaser of aforesaid flat. He filed his claim by way of Company Application for specific performance vide CA No. 248/2018 before Hon'ble High Court of Karnataka, against the vendor company M/s United Breweries (Holdings) Ltd. through Official Liquidator, as the said company was under liquidation and the said case is still pending before Hon'ble High Court Prayer is accordingly made to allow the present appeal, as the appellant is ready to pay the balance sale consideration amount. 6. Ld. counsel for the appellant Mr. Ravishankar Keerthapati Ramaraju in Appeal No. FPA-PMLA-3151/MUM/2019 submitted that the appellant purchased apartment bearing no. 19C at 19th Floor in Kingfisher Tower measuring 8321 sq. ft. built up area inclusive for proportionate share in all the common areas and with 5 car parking spaces in the building, as mentioned in Schedule E of the Agreement to Sell dated 12.04.2012. Ld. Counsel for appellant pointed out that as per agreement he was liable to pay sale consideration of Rs. 5,23,54,875/- for common space and Rs. 16,76,45,125/- for cost of flat, out o....
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....ip in the disputed/ attached properties. He submitted that the consortium of banks filed company petition number 57/2012 before Hon'ble High Court of Karnataka on 26.03.2012 for winding up and liquidation of the assets of the accused/absconder Shri Vijaya Mallya and his companies, which were widely published in newspapers and electronic media. ED conducted thorough investigation and filed prosecution complaint no. 07/2017 dated 15.06.2017 against Vijay Mallya and eight others before Ld. Special Judge, PMLA court, Mumbai. He pointed out that SBI led consortium also filed company application no. 58/2019 under section 8(8) of PMLA, 2002, for restoration of properties attached by ED. He pointed out that Ld. Special Judge PMLA court vide order dated 01.06.2021 restored the properties to SBI led bank consortium, as ED gave NOC in respect of the properties attached by ED claimed by the appellants in the bunch of present appeals. He argued that present appeals need to be dismissed being infructuous, as the said properties are under the process of disposal by Recovery Officer, DRT, in pursuance to the order dated 01.06.2021. Prayer is accordingly made to dismiss all the appeals. Sh. Asho....
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....ages, lobbies, lifts, staircases & other areas of common use in the UB tower block and UB city built on the schedule A property together with 57 cars parking spaces. On the basis of the sale deeds referred by the appellants the schedule B properties are part and parcel of the floors purchased by the appellants in the first two appeals and hence the same can not be segregated for alienation, transfer, attachment or auction in separation of the ownership rights of the floors VI and VII and III to V purchased by the appellants respectively. The owners, tenants, leases, transferees, occupants etc. of the said premises can not effectively enjoy their respective properties in absence of the enjoyment of the common areas as mentioned in the schedule B of the respective sale deeds. The said common area and parking space etc. will go with an ownership right of the main property situated at different floors. 9. Now coming to the contention of the appellants in appeal no. 2726/2018 & 3151/2019, the appellants have entered into an agreement to sell in their favor pertaining to unit no. 27C & 19C respectively. As per their contention they have made substantial part payment to the seller c....