IDBI money laundering case: PMLA court issues non-bailable warrant against Vijay Mallya

On June 14, the ED had filed a case under the Prevention of Money Laundering Act (PMLA) against Vijay Mallya for allegedly transferring a sum of Rs 900 crore from his company to an overseas account.

By: Express Web Desk | New Delhi | Published:July 5, 2017 3:50 pm
Vijay Mallya, IDBI fraud case, Mallya non-bailable warrant, Mallya corruption case Embattled tycoon Vijay Mallya

A Special PMLA court issued a non-bailable warrant against business tycoon Vijay Mallya on Wednesday, after taking cognizance of the charge-sheet filed by the Enforcement Directorate in connection with an IDBI money laundering case, reported news agency ANI. On June 14, the ED had filed a case under the Prevention of Money Laundering Act against Mallya for allegedly transferring a sum of Rs 900 crore from his company to an overseas account. Mallya, who left the country in March last year, owes a consortium of 17 banks, led by the State Bank of India, over Rs 9,000 crore.

Of the total Rs 900 crore, IDBI granted Mallya’s now-defunct airline a short-term loan of Rs 150 crore in October 2009, The Indian Express reported last month. In the second tranche, the bank loaned the grounded airlines Rs 750 crore. Out of the second installment, Rs 200 crore was in the form of a bridge loan and for other purposes. The ED and the CBI are probing this loan default case against Mallya and others.

Further, The Indian Express last month, quoting sources, reported that the investigation has revealed a nexus between Mallya and officials from the IDBI Bank, which helped him secure loans without giving any valuable collateral.

On the basis of the Extradition Treaty between India and the UK, authorities had in February formally requested for the extradition of the embattled tycoon.  Mallya, who sought refuge in the United Kingdom, was arrested by Scotland Yard in April “on behalf of the Indian authorities in relation to accusations of fraud”. After being produced before the Westminster Magistrates’ Court, the 61-year-old was granted bail. A legal process in the UK will ascertain whether Mallya can be extradited to India to face trial.

(With inputs from PTI)

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