The agency had seized Mallya’s shares in connection with alleged loan diversion and default on payment of dues to banks. The shares were transferred to the agency by the Stock Holding Corporation of India under the Prevention of Money Laundering Act. Mallya’s 29.46% stake in UB comprise 7.79 crore shares, of which 45.2% are pledged to lenders.Heineken has been increasing its stake in UB by purchasing pledged shares from local lenders. UB’s Articles of Association bar Heineken from buying shares from the market unless it is a bilateral deal. Mallya resigned from the UB board after the Securities & Exchange Board of India declared him ineligible as director of a listed company.

Source: Economic Times March 08, 2018 02:25 UTC