You are here: Home » Current Affairs » News » National
Business Standard

Fresh non-bailable warrant against Vijay Mallya in money-laundering case

ED filed charge sheet against Mallya in money laundering probe into Rs 900 cr IDBI-KFA loan case

Press Trust of India  |  Mumbai 

Vijay Mallya, Westminster Magistrates Court , London, extradition hearing
Former Indian politician and billionaire businessman Vijay Mallya, centre, arrives for his extradition hearing arrives at Westminster Magistrates Court in London.

A special on Wednesday issued a fresh non-bailable arrest warrant (NBW) against baron in connection with a case being probed by the (ED) for alleged bank loan fraud.

"The has taken cognisance of the ED charge sheet filed on June 14, 2017 and issued a NBW against Mallya," Special ED counsel Hiten Venegoankar said.

The ED had filed its charge sheet against Mallya and eight others in connection with its probe into the about Rs 900 crore IDBI-

The issued the fresh NBW at ED's request after the anti-agency submitted that Mallya is in the and has failed to appear before it on previous occasions too.

The 57-page charge sheet or prosecution complaint by the ED, with voluminous annexures, was filed under various sections of the Prevention of Act (PMLA).

A total of nine accused have been named in the charge sheet including Mallya, (KFA), United Breweries (Holding) Limited, senior employees and executives of the now defunct airline and the

The agency, in the charge sheet, had called Mallya the "prime mover of the entire plot" and described how funds obtained from the bank as loan were allegedly diverted by the beleaguered businessman to the Formula-1 car racing event abroad. Mallya owns Formula 1 team named Force India.

It had also mentioned the role of other officials and executives of and in this deal. The agency also had described how over Rs 400 crore was moved abroad in alleged violation of rules.

The investigations conducted by the ED, it said, had found that Mallya, along with officials "criminally conspired to obtain funds to the tune of Rs 860.92 crore despite weak financials, negative net worth, non- compliance of corporate credit policy of new client, non- quality collateral security and low credit rating of the borrower."

It said Rs 807.82 crore of the principal amount remains unpaid.

The had registered a criminal case last year under the

The ED had said its "money trail analysis revealed that out of the total loan of Rs 860.92 crore sanctioned and disbursed by IDBI, Rs 423 crore was remitted out of India. The said payments were shown to be made towards aircraft rental leasing and maintenance, servicing and spare parts."

The agency is expected to soon file a supplementary charge sheet in this case.

Mallya (61) has been in the since March 2016 and was arrested by the Scotland Yard on an extradition warrant on April 18.

The Central Bureau of Investigation (CBI) too is probing this case.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 05 2017. 19:16 IST